Correlation Analysis Between Visa and American Airlines

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

Comparative Performance

Visa  
0

Risk-Adjusted Performance

Over the last 30 days Visa has generated negative risk-adjusted returns adding no value to investors with long positions.
American Airlines  
3

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

Visa and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Visa Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Visa is expected to under-perform the American Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Visa is 1.57 times less risky than American Airlines. The stock trades about -0.06 of its potential returns per unit of risk. The American Airlines Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,216  in American Airlines Group on November 19, 2018 and sell it today you would earn a total of  138.00  from holding American Airlines Group or generate 4.29% return on investment over 30 days.

Pair Corralation between Visa and American Airlines

0.32
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy97.56%
ValuesDaily Returns

Diversification Opportunities for Visa and American Airlines

Visa Inc diversification synergy

Weak diversification

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

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Equity Analysis module to research over 250,000 global equities including funds, stocks and etfs to find investment opportunities.


 
Search macroaxis.com