>

Correlation Between American Airlines and China Eastern

Analyzing existing cross correlation between American Airlines Group and China Eastern Airlines Corporat. You can compare the effects of market volatilities on American Airlines and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and China Eastern.

Specify exactly 2 symbols:

Refresh Compare

Diversification Opportunities for American Airlines and China Eastern

American Airlines Group Inc diversification synergy
0.29
<div class='circular--portrait-small' style='background:#000000;color: white;font-size:1.6em;padding-top: 6px;;'>AM</div>
<div class='circular--portrait-small' style='background:#FF9E01;color: white;font-size:1.1em;padding-top: 12px;;'>CEA</div>

Modest diversification

The 3 months correlation between American and China is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and China Eastern Airlines Corpora in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of American Airlines i.e. American Airlines and China Eastern go up and down completely randomly.

Pair Corralation between American Airlines and China Eastern

Considering 30-days investment horizon, American Airlines Group is expected to under-perform the China Eastern. In addition to that, American Airlines is 1.09 times more volatile than China Eastern Airlines Corporat. It trades about -0.13 of its total potential returns per unit of risk. China Eastern Airlines Corporat is currently generating about -0.07 per unit of volatility. If you would invest  2,535  in China Eastern Airlines Corporat on January 27, 2020 and sell it today you would lose (310.00)  from holding China Eastern Airlines Corporat or give up 12.23% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

American Airlines Group Inc  vs.  China Eastern Airlines Corpora

 Performance (%) 
    
  Timeline 
American Airlines 
00

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. Even with weak performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in March 2020. The new chaos may also be a sign of medium term up-swing for the business stakeholders.
China Eastern Airlines 
00

Risk-Adjusted Performance

Over the last 30 days China Eastern Airlines Corporat has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak 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 China Eastern Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Portfolio Manager module to state of the art portfolio manager to monitor and improve performance of your invested capital.