Correlation Between American Airlines and SVB Financial
Can any of the company-specific risk be diversified away by investing in both American Airlines and SVB Financial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Airlines and SVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Airlines Group and SVB Financial Group, you can compare the effects of market volatilities on American Airlines and SVB Financial 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 SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and SVB Financial.
Diversification Opportunities for American Airlines and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group 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 SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of American Airlines i.e., American Airlines and SVB Financial go up and down completely randomly.
Pair Corralation between American Airlines and SVB Financial
If you would invest 6,950 in American Airlines Group on October 18, 2024 and sell it today you would earn a total of 3,889 from holding American Airlines Group or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
American Airlines Group vs. SVB Financial Group
Performance |
| Timeline |
| American Airlines |
| SVB Financial Group |
American Airlines and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Airlines and SVB Financial
The main advantage of trading using opposite American Airlines and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, SVB Financial 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| American Airlines vs. Marfrig Global Foods | American Airlines vs. Take Two Interactive Software | American Airlines vs. Spotify Technology SA | American Airlines vs. Fair Isaac |
| SVB Financial vs. Marvell Technology | SVB Financial vs. Verizon Communications | SVB Financial vs. Bio Techne | SVB Financial vs. JB Hunt Transport |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |