This module allows you to analyze existing cross correlation between American Airlines Group and Best Buy Co. You can compare the effects of market volatilities on American Airlines and Best Buy 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 American Airlines with a short position of Best Buy. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Best Buy.
|Horizon||30 Days Login to change|
Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Over the last 30 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
American Airlines and Best Buy Volatility Contrast
Predicted Return Density
American Airlines Group Inc vs. Best Buy Co Inc
Considering 30-days investment horizon, American Airlines Group is expected to generate 1.33 times more return on investment than Best Buy. However, American Airlines is 1.33 times more volatile than Best Buy Co. It trades about -0.03 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.1 per unit of risk. If you would invest 3,306 in American Airlines Group on May 26, 2019 and sell it today you would lose (124.00) from holding American Airlines Group or give up 3.75% of portfolio value over 30 days.
Pair Corralation between American Airlines and Best Buy
|Time Period||2 Months [change]|
Diversification Opportunities for American Airlines and Best Buy
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Best Buy Co Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and American Airlines 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 American Airlines Group are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of American Airlines i.e. American Airlines and Best Buy go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.