Correlation Between American Airlines and 025537AW1
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By analyzing existing cross correlation between American Airlines Group and AEP 595 01 NOV 32, you can compare the effects of market volatilities on American Airlines and 025537AW1 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 025537AW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and 025537AW1.
Diversification Opportunities for American Airlines and 025537AW1
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 025537AW1 is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and AEP 595 01 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP 595 01 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 025537AW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP 595 01 has no effect on the direction of American Airlines i.e., American Airlines and 025537AW1 go up and down completely randomly.
Pair Corralation between American Airlines and 025537AW1
Considering the 90-day investment horizon American Airlines Group is expected to generate 3.41 times more return on investment than 025537AW1. However, American Airlines is 3.41 times more volatile than AEP 595 01 NOV 32. It trades about 0.02 of its potential returns per unit of risk. AEP 595 01 NOV 32 is currently generating about -0.02 per unit of risk. If you would invest 1,346 in American Airlines Group on September 3, 2024 and sell it today you would earn a total of 106.00 from holding American Airlines Group or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.75% |
| Values | Daily Returns |
American Airlines Group vs. AEP 595 01 NOV 32
Performance |
| Timeline |
| American Airlines |
| AEP 595 01 |
American Airlines and 025537AW1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and 025537AW1
The main advantage of trading using opposite American Airlines and 025537AW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, 025537AW1 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 025537AW1 will offset losses from the drop in 025537AW1's long position.| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. United Airlines Holdings |
| 025537AW1 vs. Willamette Valley Vineyards | 025537AW1 vs. Playstudios | 025537AW1 vs. Philip Morris International | 025537AW1 vs. Contagious Gaming |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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