Pair Correlation Between ATT and American Airlines

This module allows you to analyze existing cross correlation between ATT Inc and American Airlines Group Inc. You can compare the effects of market volatilities on ATT 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 ATT with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of ATT and American Airlines.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 ATT Inc  vs   American Airlines Group Inc
 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, ATT is expected to generate 65.24 times less return on investment than American Airlines. But when comparing it to its historical volatility, ATT Inc is 1.52 times less risky than American Airlines. It trades about 0.01 of its potential returns per unit of risk. American Airlines Group Inc is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  4,706  in American Airlines Group Inc on September 22, 2017 and sell it today you would earn a total of  487  from holding American Airlines Group Inc or generate 10.35% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between ATT and American Airlines
-0.6

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthWeak
Accuracy4.1%
ValuesDaily Returns

Diversification

Excellent diversification

Overlapping area represents the amount of risk that can be diversified away by holding ATT 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 Group and ATT 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 ATT Inc 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 ATT i.e. ATT and American Airlines go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

ATT Inc

  
0 

Risk-Adjusted Performance

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

American Airlines Group

  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.