This module allows you to analyze existing cross correlation between Citigroup and American Airlines Group. You can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and American Airlines.
|Horizon||30 Days Login to change|
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Citigroup is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
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.
Citigroup and American Airlines Volatility Contrast
Predicted Return Density
Citigroup Inc vs. American Airlines Group Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 0.71 times more return on investment than American Airlines. However, Citigroup is 1.41 times less risky than American Airlines. It trades about -0.02 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.04 per unit of risk. If you would invest 6,873 in Citigroup on May 25, 2019 and sell it today you would lose (132.00) from holding Citigroup or give up 1.92% of portfolio value over 30 days.
Pair Corralation between Citigroup and American Airlines
|Time Period||2 Months [change]|
Diversification Opportunities for Citigroup and American Airlines
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 Citigroup 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 Citigroup 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 Citigroup i.e. Citigroup and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.