Correlation Between American Airlines and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both American Airlines and Glaston Oyj 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 Glaston Oyj 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 Glaston Oyj Abp, you can compare the effects of market volatilities on American Airlines and Glaston Oyj 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 Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Glaston Oyj.
Diversification Opportunities for American Airlines and Glaston Oyj
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Glaston is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp 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 Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of American Airlines i.e., American Airlines and Glaston Oyj go up and down completely randomly.
Pair Corralation between American Airlines and Glaston Oyj
Assuming the 90 days horizon American Airlines Group is expected to generate 1.04 times more return on investment than Glaston Oyj. However, American Airlines is 1.04 times more volatile than Glaston Oyj Abp. It trades about 0.02 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about 0.0 per unit of risk. If you would invest 1,273 in American Airlines Group on September 2, 2024 and sell it today you would earn a total of 153.00 from holding American Airlines Group or generate 12.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Airlines Group vs. Glaston Oyj Abp
Performance |
| Timeline |
| American Airlines |
| Glaston Oyj Abp |
American Airlines and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and Glaston Oyj
The main advantage of trading using opposite American Airlines and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, Glaston Oyj 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 Glaston Oyj will offset losses from the drop in Glaston Oyj's long position.| American Airlines vs. Superior Plus Corp | American Airlines vs. NMI Holdings | American Airlines vs. Origin Agritech | American Airlines vs. SIVERS SEMICONDUCTORS AB |
| Glaston Oyj vs. Warner Music Group | Glaston Oyj vs. CAREER EDUCATION | Glaston Oyj vs. United Airlines Holdings | Glaston Oyj vs. American Airlines Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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