Correlation Between GRENKELEASING and American Airlines
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING 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 GRENKELEASING and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and American Airlines Group, you can compare the effects of market volatilities on GRENKELEASING 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 GRENKELEASING with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and American Airlines.
Diversification Opportunities for GRENKELEASING and American Airlines
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRENKELEASING and American is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and GRENKELEASING 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 GRENKELEASING Dusseldorf 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 GRENKELEASING i.e., GRENKELEASING and American Airlines go up and down completely randomly.
Pair Corralation between GRENKELEASING and American Airlines
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.68 times more return on investment than American Airlines. However, GRENKELEASING Dusseldorf is 1.47 times less risky than American Airlines. It trades about 0.25 of its potential returns per unit of risk. American Airlines Group is currently generating about 0.12 per unit of risk. If you would invest 1,550 in GRENKELEASING Dusseldorf on October 11, 2024 and sell it today you would earn a total of 132.00 from holding GRENKELEASING Dusseldorf or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. American Airlines Group
Performance |
| Timeline |
| GRENKELEASING Duss |
| American Airlines |
GRENKELEASING and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and American Airlines
The main advantage of trading using opposite GRENKELEASING and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING 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.| GRENKELEASING vs. Chesapeake Utilities | GRENKELEASING vs. Haier Smart Home | GRENKELEASING vs. Focus Home Interactive | GRENKELEASING vs. GREENX METALS LTD |
| American Airlines vs. INDOFOOD AGRI RES | American Airlines vs. TYSON FOODS A | American Airlines vs. Performance Food Group | American Airlines vs. INTERSHOP Communications Aktiengesellschaft |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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