Correlation Between EEDUCATION ALBERT and American Airlines
Can any of the company-specific risk be diversified away by investing in both EEDUCATION ALBERT 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 EEDUCATION ALBERT and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EEDUCATION ALBERT AB and American Airlines Group, you can compare the effects of market volatilities on EEDUCATION ALBERT 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 EEDUCATION ALBERT with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of EEDUCATION ALBERT and American Airlines.
Diversification Opportunities for EEDUCATION ALBERT and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EEDUCATION and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EEDUCATION ALBERT AB and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and EEDUCATION ALBERT 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 EEDUCATION ALBERT AB 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 EEDUCATION ALBERT i.e., EEDUCATION ALBERT and American Airlines go up and down completely randomly.
Pair Corralation between EEDUCATION ALBERT and American Airlines
If you would invest 1,257 in American Airlines Group on August 29, 2024 and sell it today you would earn a total of 154.00 from holding American Airlines Group or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EEDUCATION ALBERT AB vs. American Airlines Group
Performance |
| Timeline |
| EEDUCATION ALBERT |
| American Airlines |
EEDUCATION ALBERT and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EEDUCATION ALBERT and American Airlines
The main advantage of trading using opposite EEDUCATION ALBERT and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EEDUCATION ALBERT 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.| EEDUCATION ALBERT vs. Superior Plus Corp | EEDUCATION ALBERT vs. NMI Holdings | EEDUCATION ALBERT vs. Origin Agritech | EEDUCATION ALBERT vs. SIVERS SEMICONDUCTORS AB |
| American Airlines vs. GRIFFIN MINING LTD | American Airlines vs. Corporate Office Properties | American Airlines vs. Zijin Mining Group | American Airlines vs. Perseus Mining Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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