Correlation Between Altius Minerals and American Airlines
Can any of the company-specific risk be diversified away by investing in both Altius Minerals and American Airlines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Altius Minerals and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altius Minerals and American Airlines Group, you can compare the effects of market volatilities on Altius Minerals 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 Altius Minerals with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altius Minerals and American Airlines.
Diversification Opportunities for Altius Minerals and American Airlines
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altius and American is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Altius Minerals and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Altius Minerals 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 Altius Minerals 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 Altius Minerals i.e., Altius Minerals and American Airlines go up and down completely randomly.
Pair Corralation between Altius Minerals and American Airlines
Assuming the 90 days trading horizon Altius Minerals is expected to generate 0.46 times more return on investment than American Airlines. However, Altius Minerals is 2.16 times less risky than American Airlines. It trades about 0.15 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.11 per unit of risk. If you would invest 2,020 in Altius Minerals on January 26, 2024 and sell it today you would earn a total of 77.00 from holding Altius Minerals or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altius Minerals vs. American Airlines Group
Performance |
| Timeline |
| Altius Minerals |
| American Airlines |
Altius Minerals and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altius Minerals and American Airlines
The main advantage of trading using opposite Altius Minerals and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altius Minerals position performs unexpectedly, American Airlines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will offset losses from the drop in American Airlines' long position.| Altius Minerals vs. Almaden Minerals | Altius Minerals vs. Mirasol Resources | Altius Minerals vs. EMX Royalty Corp | Altius Minerals vs. Laramide Resources |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |