This module allows you to analyze existing cross correlation between Apple Inc and American Airlines Group Inc. You can compare the effects of market volatilities on Apple and American Airlines 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 Apple with a short position of American Airlines. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
and American Airlines
Apple Inc vs American Airlines Group Inc
Given the investment horizon of 30 days, Apple is expected to generate 10.07 times less return on investment than American Airlines. But when comparing it to its historical volatility, Apple Inc is 1.78 times less risky than American Airlines. It trades about 0.08 of its potential returns per unit of risk. American Airlines Group Inc is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 5,149 in American Airlines Group Inc on December 17, 2017 and sell it today you would earn a total of 734 from holding American Airlines Group Inc or generate 14.26% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group and Apple 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 Apple Inc are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines Group has no effect on the direction of Apple i.e. Apple and American Airlines go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.