Correlation Analysis Between Apple and American Airlines

This module allows you to analyze existing cross correlation between Apple and American Airlines Group. 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.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Apple  
1919

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  
00

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 considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

Apple and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Apple  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.62 times more return on investment than American Airlines. However, Apple is 1.62 times less risky than American Airlines. It trades about 0.29 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.01 per unit of risk. If you would invest  21,417  in Apple on November 8, 2019 and sell it today you would earn a total of  5,654  from holding Apple or generate 26.4% return on investment over 30 days.

Pair Corralation between Apple and American Airlines

0.43
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy98.48%
ValuesDaily Returns

Diversification Opportunities for Apple and American Airlines

Apple diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 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 has no effect on the direction of Apple i.e. Apple and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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