Correlation Analysis Between Chevron and American Airlines

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

Comparative Performance

Chevron  
00

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
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.

Chevron and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Chevron Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Chevron Corporation is expected to generate 0.52 times more return on investment than American Airlines. However, Chevron Corporation is 1.91 times less risky than American Airlines. It trades about -0.08 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.11 per unit of risk. If you would invest  12,525  in Chevron Corporation on September 22, 2019 and sell it today you would lose (864.00)  from holding Chevron Corporation or give up 6.9% of portfolio value over 30 days.

Pair Corralation between Chevron and American Airlines

0.7
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Chevron and American Airlines

Chevron Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp. 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 Chevron 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 Chevron Corporation 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 Chevron i.e. Chevron and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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