Correlation Between American Airlines and 988498AK7
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By analyzing existing cross correlation between American Airlines Group and Yum Brands 535, you can compare the effects of market volatilities on American Airlines and 988498AK7 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 988498AK7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and 988498AK7.
Diversification Opportunities for American Airlines and 988498AK7
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 988498AK7 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and Yum Brands 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum Brands 535 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 988498AK7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum Brands 535 has no effect on the direction of American Airlines i.e., American Airlines and 988498AK7 go up and down completely randomly.
Pair Corralation between American Airlines and 988498AK7
Considering the 90-day investment horizon American Airlines Group is expected to generate 1.95 times more return on investment than 988498AK7. However, American Airlines is 1.95 times more volatile than Yum Brands 535. It trades about 0.06 of its potential returns per unit of risk. Yum Brands 535 is currently generating about -0.03 per unit of risk. If you would invest 1,240 in American Airlines Group on September 14, 2024 and sell it today you would earn a total of 452.00 from holding American Airlines Group or generate 36.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.4% |
| Values | Daily Returns |
American Airlines Group vs. Yum Brands 535
Performance |
| Timeline |
| American Airlines |
| Yum Brands 535 |
American Airlines and 988498AK7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and 988498AK7
The main advantage of trading using opposite American Airlines and 988498AK7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, 988498AK7 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 988498AK7 will offset losses from the drop in 988498AK7's long position.| American Airlines vs. Southwest Airlines | American Airlines vs. United Airlines Holdings | American Airlines vs. Frontier Group Holdings |
| 988498AK7 vs. American Airlines Group | 988498AK7 vs. Sun Country Airlines | 988498AK7 vs. Mesa Air Group | 988498AK7 vs. Ryanair 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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