Correlation Analysis Between American Airlines and Chevron

This module allows you to analyze existing cross correlation between American Airlines Group and Chevron Corporation. You can compare the effects of market volatilities on American Airlines and Chevron 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 Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Chevron.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

American Airlines  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, American Airlines revealed solid returns over the last few months and may actually be approaching a breakup point.
Chevron  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. Inspite fairly unsteady basic indicators, Chevron may actually be approaching a critical reversion point that can send shares even higher in August 2019.

American Airlines and Chevron Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  Chevron Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to generate 2.48 times more return on investment than Chevron. However, American Airlines is 2.48 times more volatile than Chevron Corporation. It trades about 0.14 of its potential returns per unit of risk. Chevron Corporation is currently generating about 0.16 per unit of risk. If you would invest  2,950  in American Airlines Group on June 22, 2019 and sell it today you would earn a total of  358.00  from holding American Airlines Group or generate 12.14% return on investment over 30 days.

Pair Corralation between American Airlines and Chevron

0.89
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and Chevron

American Airlines Group Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of American Airlines i.e. American Airlines and Chevron go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.


 
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