Correlation Between American Airlines and Win Hanverky
Can any of the company-specific risk be diversified away by investing in both American Airlines and Win Hanverky 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 Win Hanverky 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 Win Hanverky Holdings, you can compare the effects of market volatilities on American Airlines and Win Hanverky 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 Win Hanverky. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Win Hanverky.
Diversification Opportunities for American Airlines and Win Hanverky
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Win is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and Win Hanverky Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Win Hanverky Holdings 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 Win Hanverky. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Win Hanverky Holdings has no effect on the direction of American Airlines i.e., American Airlines and Win Hanverky go up and down completely randomly.
Pair Corralation between American Airlines and Win Hanverky
If you would invest 1,679 in American Airlines Group on October 12, 2024 and sell it today you would earn a total of 46.00 from holding American Airlines Group or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Airlines Group vs. Win Hanverky Holdings
Performance |
| Timeline |
| American Airlines |
| Win Hanverky Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Airlines and Win Hanverky Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and Win Hanverky
The main advantage of trading using opposite American Airlines and Win Hanverky positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, Win Hanverky 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 Win Hanverky will offset losses from the drop in Win Hanverky's long position.| American Airlines vs. INDOFOOD AGRI RES | American Airlines vs. TYSON FOODS A | American Airlines vs. Performance Food Group | American Airlines vs. INTERSHOP Communications Aktiengesellschaft |
| Win Hanverky vs. American Airlines Group | Win Hanverky vs. Aegean Airlines SA | Win Hanverky vs. BioNTech SE | Win Hanverky vs. Gol Intelligent 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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