Correlation Analysis Between Hawaiian Holdings and American Airlines

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

Hawaiian Holdings  
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Risk-Adjusted Performance

Over the last 30 days Hawaiian Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hawaiian Holdings is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
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 weak performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in February 2020. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Hawaiian Holdings and American Airlines Volatility Contrast

 Predicted Return Density 
    
  Returns 

Hawaiian Holdings Inc  vs.  American Airlines Group Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Hawaiian Holdings is expected to generate 0.83 times more return on investment than American Airlines. However, Hawaiian Holdings is 1.21 times less risky than American Airlines. It trades about -0.01 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.12 per unit of risk. If you would invest  2,809  in Hawaiian Holdings on December 28, 2019 and sell it today you would lose (63.00)  from holding Hawaiian Holdings or give up 2.24% of portfolio value over 30 days.

Pair Corralation between Hawaiian Holdings and American Airlines

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

Diversification Opportunities for Hawaiian Holdings and American Airlines

Hawaiian Holdings Inc diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Hawaiian Holdings 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 Hawaiian Holdings 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 Hawaiian Holdings 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 Hawaiian Holdings i.e. Hawaiian Holdings and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.