Correlation Analysis Between LATAM Airlines and Hawaiian Holdings

This module allows you to analyze existing cross correlation between LATAM Airlines Group S A and Hawaiian Holdings. You can compare the effects of market volatilities on LATAM Airlines and Hawaiian Holdings 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 LATAM Airlines with a short position of Hawaiian Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of LATAM Airlines and Hawaiian Holdings.
Horizon     30 Days    Login   to change
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Comparative Performance

LATAM Airlines Group  
00

Risk-Adjusted Performance

Over the last 30 days LATAM Airlines Group S A has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, LATAM Airlines is not utilizing all of its potentials. The prevalent stock price chaos, may contribute to medium term losses for the stakeholders.
Hawaiian Holdings  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hawaiian Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat fragile basic indicators, Hawaiian Holdings may actually be approaching a critical reversion point that can send shares even higher in October 2019.

LATAM Airlines and Hawaiian Holdings Volatility Contrast

 Predicted Return Density 
      Returns 

LATAM Airlines Group S A  vs.  Hawaiian Holdings Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, LATAM Airlines is expected to generate 3.97 times less return on investment than Hawaiian Holdings. In addition to that, LATAM Airlines is 1.03 times more volatile than Hawaiian Holdings. It trades about 0.01 of its total potential returns per unit of risk. Hawaiian Holdings is currently generating about 0.06 per unit of volatility. If you would invest  2,543  in Hawaiian Holdings on August 20, 2019 and sell it today you would earn a total of  208.00  from holding Hawaiian Holdings or generate 8.18% return on investment over 30 days.

Pair Corralation between LATAM Airlines and Hawaiian Holdings

0.75
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for LATAM Airlines and Hawaiian Holdings

LATAM Airlines Group S A diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding LATAM Airlines Group S A and Hawaiian Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hawaiian Holdings and LATAM Airlines 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 LATAM Airlines Group S A are associated (or correlated) with Hawaiian Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawaiian Holdings has no effect on the direction of LATAM Airlines i.e. LATAM Airlines and Hawaiian Holdings go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
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