Correlation Analysis Between Avianca Holdings and American Airlines

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

Avianca Holdings S  
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Risk-Adjusted Performance

Over the last 30 days Avianca Holdings S A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in October 2019. The prevalent disturbance may also be a sign of long-run up-swing for the entity stockholder.
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 latest weak performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.

Avianca Holdings and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Avianca Holdings S A  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Avianca Holdings S A is expected to under-perform the American Airlines. In addition to that, Avianca Holdings is 1.44 times more volatile than American Airlines Group. It trades about -0.08 of its total potential returns per unit of risk. American Airlines Group is currently generating about -0.08 per unit of volatility. If you would invest  3,171  in American Airlines Group on August 22, 2019 and sell it today you would lose (403.00)  from holding American Airlines Group or give up 12.71% of portfolio value over 30 days.

Pair Corralation between Avianca Holdings and American Airlines

0.72
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Avianca Holdings and American Airlines

Avianca Holdings S A diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Avianca Holdings S A 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 Avianca Holdings 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 Avianca Holdings S A 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 Avianca Holdings i.e. Avianca Holdings and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.


 
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