This module allows you to analyze existing cross correlation between Sprint Corporation and American Airlines Group. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and American Airlines.
Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 0.61 times more return on investment than American Airlines. However, Sprint Corporation is 1.65 times less risky than American Airlines. It trades about -0.02 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.16 per unit of risk. If you would invest 550.00 in Sprint Corporation on June 22, 2018 and sell it today you would lose (4.00) from holding Sprint Corporation or give up 0.73% of portfolio value over 30 days.
Pair Corralation between Sprint and American Airlines
Overlapping area represents the amount of risk that can be diversified away by holding Sprint 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 Group and Sprint 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 Sprint 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 Sprint i.e. Sprint and American Airlines go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.