Correlation Analysis Between International Business and American Airlines

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

International Business Machine  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, International Business is expected to generate 3.22 times less return on investment than American Airlines. But when comparing it to its historical volatility, International Business Machines Corporation is 2.78 times less risky than American Airlines. It trades about 0.21 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  3,952  in American Airlines Group on August 25, 2018 and sell it today you would earn a total of  408.00  from holding American Airlines Group or generate 10.32% return on investment over 30 days.

Pair Corralation between International Business and American Airlines

0.68
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and American Airlines Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group and International Business 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 International Business Machines 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 Group has no effect on the direction of International Business i.e. International Business and American Airlines go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
International Business  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.
American Airlines Group  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1166.09

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