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
Check Efficiency

Comparative Performance

Visa  
1717

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days. Inspite fairly unsteady primary indicators, Visa showed solid returns over the last few months and may actually be approaching a breakup point.
American Airlines  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably sluggish technical indicators, American Airlines revealed solid returns over the last few months and may actually be approaching a breakup point.

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 0.4 times more return on investment than American Airlines. However, Visa is 2.51 times less risky than American Airlines. It trades about 0.26 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.1 per unit of risk. If you would invest  16,347  in Visa on June 18, 2019 and sell it today you would earn a total of  1,706  from holding Visa or generate 10.44% return on investment over 30 days.

Pair Corralation between Visa and American Airlines

0.86
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Visa and American Airlines

Visa Inc diversification synergy

Very poor 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.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
Search macroaxis.com