Correlation Between CHINA TONTINE and American Airlines
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and American Airlines 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 CHINA TONTINE and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and American Airlines Group, you can compare the effects of market volatilities on CHINA TONTINE and American Airlines 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 CHINA TONTINE with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and American Airlines.
Diversification Opportunities for CHINA TONTINE and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and American Airlines go up and down completely randomly.
Pair Corralation between CHINA TONTINE and American Airlines
If you would invest 1,287 in American Airlines Group on September 14, 2024 and sell it today you would earn a total of 392.00 from holding American Airlines Group or generate 30.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. American Airlines Group
Performance |
| Timeline |
| CHINA TONTINE WINES |
| American Airlines |
CHINA TONTINE and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and American Airlines
The main advantage of trading using opposite CHINA TONTINE and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, American Airlines 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 American Airlines will offset losses from the drop in American Airlines' long position.| CHINA TONTINE vs. Chiba Bank | CHINA TONTINE vs. PKSHA TECHNOLOGY INC | CHINA TONTINE vs. TFS FINANCIAL | CHINA TONTINE vs. SMA Solar Technology |
| American Airlines vs. RYANAIR HLDGS ADR | American Airlines vs. Ryanair Holdings plc | American Airlines vs. Superior Plus Corp | American Airlines vs. SIVERS SEMICONDUCTORS AB |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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