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  
19

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.
American Airlines  
0

Risk-Adjusted Performance

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

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 generate 0.48 times more return on investment than American Airlines. However, Visa is 2.1 times less risky than American Airlines. It trades about 0.29 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.09 per unit of risk. If you would invest  13,728  in Visa on February 16, 2019 and sell it today you would earn a total of  1,768  from holding Visa or generate 12.88% return on investment over 30 days.

Pair Corralation between Visa and American Airlines

-0.31
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Visa and American Airlines

Visa Inc diversification synergy

Very good 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.

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