Correlation Analysis Between American Airlines and Sprint

This module allows you to analyze existing cross correlation between American Airlines Group and Sprint Corporation. You can compare the effects of market volatilities on American Airlines and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Sprint.
Horizon     30 Days    Login   to change
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Comparative Performance

American Airlines  
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Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
Sprint  
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Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.

American Airlines and Sprint Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Sprint Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Sprint. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.21 times less risky than Sprint. The stock trades about -0.18 of its potential returns per unit of risk. The Sprint Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  684.00  in Sprint Corporation on July 22, 2019 and sell it today you would lose (2.00)  from holding Sprint Corporation or give up 0.29% of portfolio value over 30 days.

Pair Corralation between American Airlines and Sprint

0.27
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Sprint

American Airlines Group Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of American Airlines i.e. American Airlines and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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