Pair Correlation Between American Airlines and Chevron

This module allows you to analyze existing cross correlation between American Airlines Group Inc 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.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 American Airlines Group Inc  vs   Chevron Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group Inc is expected to generate 1.79 times more return on investment than Chevron. However, American Airlines is 1.79 times more volatile than Chevron Corporation. It trades about 0.29 of its potential returns per unit of risk. Chevron Corporation is currently generating about 0.27 per unit of risk. If you would invest  5,285  in American Airlines Group Inc on December 23, 2017 and sell it today you would earn a total of  495  from holding American Airlines Group Inc or generate 9.37% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between American Airlines and Chevron
0.84

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

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 Inc 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

American Airlines Group

  
19 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.

Chevron

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Chevron Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.