Pair Correlation Between American Airlines and Visa

This module allows you to analyze existing cross correlation between American Airlines Group Inc and Visa Inc. You can compare the effects of market volatilities on American Airlines and Visa 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 Visa. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Visa.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 American Airlines Group Inc  vs   Visa Inc
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group Inc is expected to generate 2.39 times more return on investment than Visa. However, American Airlines is 2.39 times more volatile than Visa Inc. It trades about 0.26 of its potential returns per unit of risk. Visa Inc is currently generating about 0.12 per unit of risk. If you would invest  4,706  in American Airlines Group Inc on September 22, 2017 and sell it today you would earn a total of  487  from holding American Airlines Group Inc or generate 10.35% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between American Airlines and Visa
0.86

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa Inc 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 Inc are associated (or correlated) with Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Inc has no effect on the direction of American Airlines i.e. American Airlines and Visa go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

American Airlines Group

  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.

Visa Inc

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.