Correlation Between Upsellon Brands and American Airlines
Can any of the company-specific risk be diversified away by investing in both Upsellon Brands and American Airlines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Upsellon Brands and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upsellon Brands Holdings and American Airlines Group, you can compare the effects of market volatilities on Upsellon Brands 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 Upsellon Brands with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsellon Brands and American Airlines.
Diversification Opportunities for Upsellon Brands and American Airlines
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Upsellon and American is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Upsellon Brands Holdings and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Upsellon Brands 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 Upsellon Brands Holdings 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 Upsellon Brands i.e., Upsellon Brands and American Airlines go up and down completely randomly.
Pair Corralation between Upsellon Brands and American Airlines
Assuming the 90 days trading horizon Upsellon Brands Holdings is expected to generate 2.3 times more return on investment than American Airlines. However, Upsellon Brands is 2.3 times more volatile than American Airlines Group. It trades about 0.04 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 10,480 in Upsellon Brands Holdings on January 24, 2024 and sell it today you would earn a total of 380.00 from holding Upsellon Brands Holdings or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.03% |
| Values | Daily Returns |
Upsellon Brands Holdings vs. American Airlines Group
Performance |
| Timeline |
| Upsellon Brands Holdings |
| American Airlines |
Upsellon Brands and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsellon Brands and American Airlines
The main advantage of trading using opposite Upsellon Brands and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsellon Brands position performs unexpectedly, American Airlines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will offset losses from the drop in American Airlines' long position.| Upsellon Brands vs. Fattal 1998 Holdings | Upsellon Brands vs. El Al Israel | Upsellon Brands vs. Bank Leumi Le Israel | Upsellon Brands vs. Teva Pharmaceutical Industries |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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