Pair Correlation Between Sprint and American Airlines

This module allows you to analyze existing cross correlation between Sprint Corporation and American Airlines Group Inc. 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.
Investment 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 under-perform the American Airlines. In addition to that, Sprint is 1.53 times more volatile than American Airlines Group Inc. It trades about -0.11 of its total potential returns per unit of risk. American Airlines Group Inc is currently generating about 0.07 per unit of volatility. If you would invest  4,796  in American Airlines Group Inc on May 28, 2017 and sell it today you would earn a total of  82.00  from holding American Airlines Group Inc or generate 1.71% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Sprint and American Airlines
0.34

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Weak 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

  
0 

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

American Airlines Group

  
4 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.