Correlation Analysis Between China Eastern and American Airlines

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

China Eastern Airlines  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in China Eastern Airlines Corporat are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Despite somewhat inconsistent basic indicators, China Eastern sustained 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 prevailing stock price chaos, may contribute to medium term losses for the stakeholders.

China Eastern and American Airlines Volatility Contrast

 Predicted Return Density 
    
  Returns 

China Eastern Airlines Corpora  vs.  American Airlines Group Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, China Eastern Airlines Corporat is expected to generate 1.33 times more return on investment than American Airlines. However, China Eastern is 1.33 times more volatile than American Airlines Group. It trades about 0.09 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.0 per unit of risk. If you would invest  2,470  in China Eastern Airlines Corporat on December 18, 2019 and sell it today you would earn a total of  307.00  from holding China Eastern Airlines Corporat or generate 12.43% return on investment over 30 days.

Pair Corralation between China Eastern and American Airlines

-0.03
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for China Eastern and American Airlines

China Eastern Airlines Corpora diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding China Eastern Airlines Corpora 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 China Eastern 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 China Eastern Airlines Corporat 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 China Eastern i.e. China Eastern and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Aroon Oscillator module to analyze current equity momentum using aroon oscillator and other momentum ratios.