This module allows you to analyze existing cross correlation between American Airlines Group and Macys. You can compare the effects of market volatilities on American Airlines and Macys and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Airlines with a short position of Macys. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Macys.
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Macys. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.39 times less risky than Macys. The stock trades about -0.07 of its potential returns per unit of risk. The Macys is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,072 in Macys on April 25, 2018 and sell it today you would earn a total of 331.00 from holding Macys or generate 10.77% return on investment over 30 days.
Pair Corralation between American Airlines and Macys
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Macys Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Macys and American Airlines is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Airlines Group are associated (or correlated) with Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys has no effect on the direction of American Airlines i.e. American Airlines and Macys go up and down completely randomly.
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