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  
0

Risk-Adjusted Performance

Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
American Airlines  
2

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

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 under-perform the American Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Sprint Corporation is 1.5 times less risky than American Airlines. The stock trades about -0.02 of its potential returns per unit of risk. The American Airlines Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,178  in American Airlines Group on November 14, 2018 and sell it today you would earn a total of  121.00  from holding American Airlines Group or generate 3.81% return on investment over 30 days.

Pair Corralation between Sprint and American Airlines

0.16
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Sprint and American Airlines

Sprint Corp. diversification synergy

Average 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.

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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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