Correlation Analysis Between Alaska Air and American Airlines

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

Alaska Air Group  
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Risk-Adjusted Performance

Over the last 30 days Alaska Air Group has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, Alaska Air is not utilizing all of its potentials. The new stock price confusion, may contribute to short-horizon losses for the traders.
American Airlines  
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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 sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Alaska Air and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Alaska Air Group Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Alaska Air Group is expected to generate 0.73 times more return on investment than American Airlines. However, Alaska Air Group is 1.37 times less risky than American Airlines. It trades about -0.05 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.21 per unit of risk. If you would invest  6,242  in Alaska Air Group on July 22, 2019 and sell it today you would lose (231.00)  from holding Alaska Air Group or give up 3.7% of portfolio value over 30 days.

Pair Corralation between Alaska Air and American Airlines

0.76
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Alaska Air and American Airlines

Alaska Air Group Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alaska Air Group 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 Alaska Air 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 Alaska Air Group 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 Alaska Air i.e. Alaska Air and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.


 
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