Correlation Between American Airlines and NISOURCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Airlines Group and NISOURCE FIN P, you can compare the effects of market volatilities on American Airlines and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and NISOURCE.
Diversification Opportunities for American Airlines and NISOURCE
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and NISOURCE is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of American Airlines i.e., American Airlines and NISOURCE go up and down completely randomly.
Pair Corralation between American Airlines and NISOURCE
Considering the 90-day investment horizon American Airlines Group is expected to generate 2.19 times more return on investment than NISOURCE. However, American Airlines is 2.19 times more volatile than NISOURCE FIN P. It trades about 0.09 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.09 per unit of risk. If you would invest 1,394 in American Airlines Group on August 31, 2024 and sell it today you would earn a total of 58.00 from holding American Airlines Group or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.87% |
| Values | Daily Returns |
American Airlines Group vs. NISOURCE FIN P
Performance |
| Timeline |
| American Airlines |
| NISOURCE FIN P |
American Airlines and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and NISOURCE
The main advantage of trading using opposite American Airlines and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| American Airlines vs. Canadian Pacific Railway | American Airlines vs. Volaris | American Airlines vs. Werner Enterprises | American Airlines vs. flyExclusive, |
| NISOURCE vs. Sun Country Airlines | NISOURCE vs. Olympic Steel | NISOURCE vs. American Airlines Group | NISOURCE vs. SunOpta |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |