Correlation Between American Airlines and 03740LAD4
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By analyzing existing cross correlation between American Airlines Group and AON 285 28 MAY 27, you can compare the effects of market volatilities on American Airlines and 03740LAD4 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 03740LAD4. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and 03740LAD4.
Diversification Opportunities for American Airlines and 03740LAD4
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 03740LAD4 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and AON 285 28 MAY 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AON 285 28 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 03740LAD4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AON 285 28 has no effect on the direction of American Airlines i.e., American Airlines and 03740LAD4 go up and down completely randomly.
Pair Corralation between American Airlines and 03740LAD4
Considering the 90-day investment horizon American Airlines Group is expected to generate 12.2 times more return on investment than 03740LAD4. However, American Airlines is 12.2 times more volatile than AON 285 28 MAY 27. It trades about 0.01 of its potential returns per unit of risk. AON 285 28 MAY 27 is currently generating about 0.03 per unit of risk. If you would invest 1,465 in American Airlines Group on September 3, 2024 and sell it today you would lose (13.00) from holding American Airlines Group or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.26% |
| Values | Daily Returns |
American Airlines Group vs. AON 285 28 MAY 27
Performance |
| Timeline |
| American Airlines |
| AON 285 28 |
American Airlines and 03740LAD4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and 03740LAD4
The main advantage of trading using opposite American Airlines and 03740LAD4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, 03740LAD4 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 03740LAD4 will offset losses from the drop in 03740LAD4'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 |
| 03740LAD4 vs. AEP TEX INC | 03740LAD4 vs. US BANK NATIONAL | 03740LAD4 vs. MetLife | 03740LAD4 vs. Brera Holdings PLC |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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