Correlation Between American Airlines and BOS BETTER
Can any of the company-specific risk be diversified away by investing in both American Airlines and BOS BETTER 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 American Airlines and BOS BETTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Airlines Group and BOS BETTER ONLINE, you can compare the effects of market volatilities on American Airlines and BOS BETTER 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 American Airlines with a short position of BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and BOS BETTER.
Diversification Opportunities for American Airlines and BOS BETTER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE and American Airlines 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 American Airlines Group are associated (or correlated) with BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of American Airlines i.e., American Airlines and BOS BETTER go up and down completely randomly.
Pair Corralation between American Airlines and BOS BETTER
If you would invest 1,272 in American Airlines Group on September 4, 2024 and sell it today you would earn a total of 87.00 from holding American Airlines Group or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
American Airlines Group vs. BOS BETTER ONLINE
Performance |
| Timeline |
| American Airlines |
| BOS BETTER ONLINE |
American Airlines and BOS BETTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and BOS BETTER
The main advantage of trading using opposite American Airlines and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, BOS BETTER 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 BOS BETTER will offset losses from the drop in BOS BETTER's long position.| American Airlines vs. Delta Air Lines | American Airlines vs. AIR CHINA LTD | American Airlines vs. RYANAIR HLDGS ADR | American Airlines vs. Southwest Airlines Co |
| BOS BETTER vs. TOTAL GABON | BOS BETTER vs. Walgreens Boots Alliance | BOS BETTER vs. Peak Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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