This module allows you to analyze existing cross correlation between American Airlines Group and Citigroup. You can compare the effects of market volatilities on American Airlines and Citigroup 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 Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Citigroup.
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Citigroup. In addition to that, American Airlines is 1.3 times more volatile than Citigroup. It trades about -0.21 of its total potential returns per unit of risk. Citigroup is currently generating about -0.17 per unit of volatility. If you would invest 7,765 in Citigroup on March 26, 2018 and sell it today you would lose (853.00) from holding Citigroup or give up 10.99% of portfolio value over 30 days.
Pair Corralation between American Airlines and Citigroup
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of American Airlines i.e. American Airlines and Citigroup go up and down completely randomly.
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