Correlation Between American Airlines and 001192AH6
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By analyzing existing cross correlation between American Airlines Group and AGL CAP P, you can compare the effects of market volatilities on American Airlines and 001192AH6 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 001192AH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and 001192AH6.
Diversification Opportunities for American Airlines and 001192AH6
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and 001192AH6 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and AGL CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGL CAP P 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 001192AH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGL CAP P has no effect on the direction of American Airlines i.e., American Airlines and 001192AH6 go up and down completely randomly.
Pair Corralation between American Airlines and 001192AH6
Considering the 90-day investment horizon American Airlines Group is expected to generate 2.04 times more return on investment than 001192AH6. However, American Airlines is 2.04 times more volatile than AGL CAP P. It trades about 0.02 of its potential returns per unit of risk. AGL CAP P is currently generating about 0.01 per unit of risk. If you would invest 1,372 in American Airlines Group on September 4, 2024 and sell it today you would earn a total of 75.00 from holding American Airlines Group or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.87% |
| Values | Daily Returns |
American Airlines Group vs. AGL CAP P
Performance |
| Timeline |
| American Airlines |
| AGL CAP P |
American Airlines and 001192AH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and 001192AH6
The main advantage of trading using opposite American Airlines and 001192AH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, 001192AH6 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 001192AH6 will offset losses from the drop in 001192AH6's long position.| American Airlines vs. Delta Air Lines | American Airlines vs. United Airlines Holdings | American Airlines vs. Frontier Group Holdings |
| 001192AH6 vs. Fidus Investment Corp | 001192AH6 vs. Artisan Partners Asset | 001192AH6 vs. American Airlines Group | 001192AH6 vs. Western Asset Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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