This module allows you to analyze existing cross correlation between American Airlines Group and Sprint Corporation. You can compare the effects of market volatilities on American Airlines and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Sprint.
Considering 30-days investment horizon, American Airlines is expected to generate 2.52 times less return on investment than Sprint. But when comparing it to its historical volatility, American Airlines Group is 1.17 times less risky than Sprint. It trades about 0.12 of its potential returns per unit of risk. Sprint Corporation is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 541.00 in Sprint Corporation on July 22, 2018 and sell it today you would earn a total of 76.00 from holding Sprint Corporation or generate 14.05% return on investment over 30 days.
Pair Corralation between American Airlines and Sprint
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of American Airlines i.e. American Airlines and Sprint go up and down completely randomly.
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