This module allows you to analyze existing cross correlation between American Airlines Group and Visa. 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
Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Visa has generated negative risk-adjusted returns adding no value to investors with long positions.
American Airlines and Visa Volatility Contrast
American Airlines Group Inc vs. Visa Inc
Considering 30-days investment horizon, American Airlines Group is expected to generate 1.56 times more return on investment than Visa. However, American Airlines is 1.56 times more volatile than Visa. It trades about 0.03 of its potential returns per unit of risk. Visa is currently generating about -0.03 per unit of risk. If you would invest 3,206 in American Airlines Group on November 17, 2018 and sell it today you would earn a total of 50.00 from holding American Airlines Group or generate 1.56% return on investment over 30 days.
Pair Corralation between American Airlines and Visa
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Diversification Opportunities for American Airlines and Visa
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 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 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 has no effect on the direction of American Airlines i.e. American Airlines and Visa go up and down completely randomly.