Correlation Between PERSIMMON PLC and American Airlines
Can any of the company-specific risk be diversified away by investing in both PERSIMMON PLC 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 PERSIMMON PLC and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PERSIMMON PLC and American Airlines Group, you can compare the effects of market volatilities on PERSIMMON PLC 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 PERSIMMON PLC with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of PERSIMMON PLC and American Airlines.
Diversification Opportunities for PERSIMMON PLC and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PERSIMMON and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PERSIMMON PLC and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and PERSIMMON PLC 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 PERSIMMON PLC 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 PERSIMMON PLC i.e., PERSIMMON PLC and American Airlines go up and down completely randomly.
Pair Corralation between PERSIMMON PLC and American Airlines
If you would invest (100.00) in PERSIMMON PLC on January 25, 2024 and sell it today you would earn a total of 100.00 from holding PERSIMMON PLC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PERSIMMON PLC vs. American Airlines Group
Performance |
| Timeline |
| PERSIMMON PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Airlines |
PERSIMMON PLC and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PERSIMMON PLC and American Airlines
The main advantage of trading using opposite PERSIMMON PLC and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PERSIMMON PLC 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.| PERSIMMON PLC vs. Constellation Software | PERSIMMON PLC vs. Pembina Pipeline Corp | PERSIMMON PLC vs. AIR PRODCHEMICALS | PERSIMMON PLC vs. United Utilities Group |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |