This module allows you to analyze existing cross correlation between International Business Machines and American Airlines Group. You can compare the effects of market volatilities on International Business 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 International Business with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and American Airlines.
|Horizon||30 Days Login to change|
Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The continuing stock price chaos, may contribute to medium term losses for the stakeholders.
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.
International Business and American Airlines Volatility Contrast
Predicted Return Density
International Business Machine vs. American Airlines Group Inc
Considering 30-days investment horizon, International Business Machines is expected to generate 0.65 times more return on investment than American Airlines. However, International Business Machines is 1.54 times less risky than American Airlines. It trades about -0.06 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 13,935 in International Business Machines on July 23, 2019 and sell it today you would lose (541.00) from holding International Business Machines or give up 3.88% of portfolio value over 30 days.
Pair Corralation between International Business and American Airlines
|Time Period||2 Months [change]|
Diversification Opportunities for International Business and American Airlines
Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e. International Business and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.