Correlation Analysis Between American Airlines and International Business

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

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 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.
International Business  
00

Risk-Adjusted Performance

Over the last 30 days International Business Machines Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, International Business is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.

American Airlines and International Business Volatility Contrast

 Predicted Return Density 
      Returns 

American Airlines Group Inc  vs.  International Business Machine

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group is expected to generate 1.87 times more return on investment than International Business. However, American Airlines is 1.87 times more volatile than International Business Machines Corporation. It trades about -0.02 of its potential returns per unit of risk. International Business Machines Corporation is currently generating about -0.05 per unit of risk. If you would invest  3,348  in American Airlines Group on May 19, 2019 and sell it today you would lose (92.00)  from holding American Airlines Group or give up 2.75% of portfolio value over 30 days.

Pair Corralation between American Airlines and International Business

0.85
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Airlines and International Business

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 International Business Machine in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on International Business 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 International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of American Airlines i.e. American Airlines and International Business go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.


 
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