Correlation Between American Airlines and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both American Airlines and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on American Airlines and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and SIEM OFFSHORE.
Diversification Opportunities for American Airlines and SIEM OFFSHORE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and SIEM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of American Airlines i.e., American Airlines and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between American Airlines and SIEM OFFSHORE
Assuming the 90 days horizon American Airlines Group is expected to generate 1.46 times more return on investment than SIEM OFFSHORE. However, American Airlines is 1.46 times more volatile than SIEM OFFSHORE NEW. It trades about 0.23 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.01 per unit of risk. If you would invest 994.00 in American Airlines Group on September 12, 2024 and sell it today you would earn a total of 640.00 from holding American Airlines Group or generate 64.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Airlines Group vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| American Airlines |
| SIEM OFFSHORE NEW |
American Airlines and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and SIEM OFFSHORE
The main advantage of trading using opposite American Airlines and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| American Airlines vs. Renesas Electronics | American Airlines vs. UMC Electronics Co | American Airlines vs. CARSALESCOM | American Airlines vs. STMICROELECTRONICS |
| SIEM OFFSHORE vs. TC Energy | SIEM OFFSHORE vs. Pembina Pipeline Corp | SIEM OFFSHORE vs. Superior Plus Corp | SIEM OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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