Correlation Analysis Between Apple and American Airlines

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

Comparative Performance

Apple  
99

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Even with considerably conflicting technical indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.
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 November 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Apple and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Apple Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 0.71 times more return on investment than American Airlines. However, Apple is 1.41 times less risky than American Airlines. It trades about 0.14 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.09 per unit of risk. If you would invest  20,182  in Apple on September 17, 2019 and sell it today you would earn a total of  3,255  from holding Apple or generate 16.13% return on investment over 30 days.

Pair Corralation between Apple and American Airlines

-0.24
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Apple and American Airlines

Apple Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Apple 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 Apple are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of Apple i.e. Apple and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.


 
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