Correlation Between Tachlit Index and American Airlines
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By analyzing existing cross correlation between Tachlit Index Sal and American Airlines Group, you can compare the effects of market volatilities on Tachlit Index 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 Tachlit Index with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tachlit Index and American Airlines.
Diversification Opportunities for Tachlit Index and American Airlines
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tachlit and American is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tachlit Index Sal and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Tachlit Index 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 Tachlit Index Sal 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 Tachlit Index i.e., Tachlit Index and American Airlines go up and down completely randomly.
Pair Corralation between Tachlit Index and American Airlines
Assuming the 90 days trading horizon Tachlit Index Sal is expected to generate 0.65 times more return on investment than American Airlines. However, Tachlit Index Sal is 1.54 times less risky than American Airlines. It trades about 0.06 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.01 per unit of risk. If you would invest 110,400 in Tachlit Index Sal on January 20, 2024 and sell it today you would earn a total of 51,300 from holding Tachlit Index Sal or generate 46.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 78.99% |
Values | Daily Returns |
Tachlit Index Sal vs. American Airlines Group
Performance |
Timeline |
Tachlit Index Sal |
American Airlines |
Tachlit Index and American Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tachlit Index and American Airlines
The main advantage of trading using opposite Tachlit Index and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tachlit Index 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.Tachlit Index vs. Tachlit Indices Mutual | Tachlit Index vs. Tachlit Indices MF | Tachlit Index vs. Tachlit Indices Mutual | Tachlit Index vs. Tachlit Index Sal |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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