Correlation Analysis Between Sprint and American Airlines

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

Sprint Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 1.17 times more return on investment than American Airlines. However, Sprint is 1.17 times more volatile than American Airlines Group. It trades about 0.25 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  541.00  in Sprint Corporation on July 22, 2018 and sell it today you would earn a total of  76.00  from holding Sprint Corporation or generate 14.05% return on investment over 30 days.

Pair Corralation between Sprint and American Airlines

-0.29
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group and Sprint 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 Sprint Corporation 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 Group has no effect on the direction of Sprint i.e. Sprint and American Airlines go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Sprint  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.
American Airlines Group  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
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IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1207.77

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See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.