Correlation Between Xtrackers and American Airlines
Can any of the company-specific risk be diversified away by investing in both Xtrackers 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 Xtrackers and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers II and American Airlines Group, you can compare the effects of market volatilities on Xtrackers 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 Xtrackers with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers and American Airlines.
Diversification Opportunities for Xtrackers and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xtrackers and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers II and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and Xtrackers 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 Xtrackers II 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 Xtrackers i.e., Xtrackers and American Airlines go up and down completely randomly.
Pair Corralation between Xtrackers and American Airlines
If you would invest 0.00 in Xtrackers II on January 24, 2024 and sell it today you would earn a total of 0.00 from holding Xtrackers II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Xtrackers II vs. American Airlines Group
Performance |
| Timeline |
| Xtrackers II |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Airlines |
Xtrackers and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers and American Airlines
The main advantage of trading using opposite Xtrackers and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers 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.| Xtrackers vs. Xtrackers FTSE | Xtrackers vs. Xtrackers SP 500 | Xtrackers vs. Xtrackers MSCI | Xtrackers vs. Xtrackers Stoxx |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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