Correlation Analysis Between Sprint and American Airlines

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.
Horizon     30 Days    Login   to change
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Comparative Performance

Sprint  
00

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of latest fragile performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long running gains for the enterprise management.
American Airlines  
00

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 weak performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in November 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Sprint and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Sprint Corp.  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 0.88 times more return on investment than American Airlines. However, Sprint Corporation is 1.14 times less risky than American Airlines. It trades about -0.05 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.09 per unit of risk. If you would invest  709.00  in Sprint Corporation on September 15, 2019 and sell it today you would lose (61.00)  from holding Sprint Corporation or give up 8.6% of portfolio value over 30 days.

Pair Corralation between Sprint and American Airlines

0.62
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and American Airlines

Sprint Corp. diversification synergy

Poor diversification

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 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 has no effect on the direction of Sprint i.e. Sprint and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..


 
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