Correlation Analysis Between Best Buy and American Airlines

This module allows you to analyze existing cross correlation between Best Buy Co and American Airlines Group. You can compare the effects of market volatilities on Best Buy 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 Best Buy with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Best Buy and American Airlines.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Best Buy  
11

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Best Buy Co are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Inspite fairly strong basic indicators, Best Buy is not utilizing all of its potentials. The prevailing stock price disturbance, may contribute to short term losses for the investors.
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 sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Best Buy and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Best Buy Co Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Best Buy Co is expected to generate 1.21 times more return on investment than American Airlines. However, Best Buy is 1.21 times more volatile than American Airlines Group. It trades about 0.02 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.18 per unit of risk. If you would invest  6,747  in Best Buy Co on July 23, 2019 and sell it today you would earn a total of  39.00  from holding Best Buy Co or generate 0.58% return on investment over 30 days.

Pair Corralation between Best Buy and American Airlines

0.7
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Best Buy and American Airlines

Best Buy Co Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Best Buy Co 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 Best Buy 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 Best Buy Co 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 Best Buy i.e. Best Buy 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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