Correlation Analysis Between Alphabet and American Airlines

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

Comparative Performance


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, Alphabet may actually be approaching a critical reversion point that can send shares even higher in September 2019.
American Airlines  

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.

Alphabet and American Airlines Volatility Contrast

 Predicted Return Density 

Alphabet Inc  vs.  American Airlines Group Inc

 Performance (%) 

Pair Volatility

Given the investment horizon of 30 days, Alphabet is expected to generate 0.92 times more return on investment than American Airlines. However, Alphabet is 1.08 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 -0.18 per unit of risk. If you would invest  111,552  in Alphabet on July 22, 2019 and sell it today you would earn a total of  7,573  from holding Alphabet or generate 6.79% return on investment over 30 days.

Pair Corralation between Alphabet and American Airlines

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Alphabet and American Airlines

Alphabet Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Alphabet 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 Alphabet 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 Alphabet 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 Alphabet i.e. Alphabet and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.