Correlation Between American Airlines and TRUIST
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Airlines Group and TRUIST BANK, you can compare the effects of market volatilities on American Airlines and TRUIST 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 TRUIST. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and TRUIST.
Diversification Opportunities for American Airlines and TRUIST
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and TRUIST is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and TRUIST BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRUIST BANK 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 TRUIST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRUIST BANK has no effect on the direction of American Airlines i.e., American Airlines and TRUIST go up and down completely randomly.
Pair Corralation between American Airlines and TRUIST
Considering the 90-day investment horizon American Airlines Group is expected to generate 2.4 times more return on investment than TRUIST. However, American Airlines is 2.4 times more volatile than TRUIST BANK. It trades about 0.23 of its potential returns per unit of risk. TRUIST BANK is currently generating about -0.16 per unit of risk. If you would invest 1,156 in American Airlines Group on August 28, 2024 and sell it today you would earn a total of 308.00 from holding American Airlines Group or generate 26.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 76.74% |
| Values | Daily Returns |
American Airlines Group vs. TRUIST BANK
Performance |
| Timeline |
| American Airlines |
| TRUIST BANK |
American Airlines and TRUIST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and TRUIST
The main advantage of trading using opposite American Airlines and TRUIST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, TRUIST 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 TRUIST will offset losses from the drop in TRUIST's long position.| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
| TRUIST vs. Alta Equipment Group | TRUIST vs. Custom Truck One | TRUIST vs. American Airlines Group | TRUIST vs. Mesa Air Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |