Correlation Analysis Between Alaska Air and American Airlines

Analyzing existing cross correlation between Alaska Air Group and American Airlines Group. You can compare the effects of market volatilities on Alaska Air 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 Alaska Air with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Alaska Air and American Airlines.
Horizon     30 Days    Login   to change
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Check Efficiency

Comparative Performance

Alaska Air Group  
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Risk-Adjusted Performance

Over the last 30 days Alaska Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Alaska Air is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
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 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.

Alaska Air and American Airlines Volatility Contrast

 Predicted Return Density 
    
  Returns 

Alaska Air Group Inc  vs.  American Airlines Group Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

If you would invest  6,718  in Alaska Air Group on December 24, 2019 and sell it today you would earn a total of  0.00  from holding Alaska Air Group or generate 0.0% return on investment over 30 days.

Pair Corralation between Alaska Air and American Airlines

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Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.61%
ValuesDaily Returns

Diversification Opportunities for Alaska Air and American Airlines

Alaska Air Group Inc diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group 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 and Alaska Air 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 Alaska Air Group 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 Alaska Air i.e. Alaska Air and American Airlines go up and down completely randomly.

American Airlines Group

Pair trading matchups for American Airlines

See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.