Correlation Between AUTOZONE and American Airlines
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By analyzing existing cross correlation between AUTOZONE INC 375 and American Airlines Group, you can compare the effects of market volatilities on AUTOZONE 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 AUTOZONE with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTOZONE and American Airlines.
Diversification Opportunities for AUTOZONE and American Airlines
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AUTOZONE and American is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding AUTOZONE INC 375 and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and AUTOZONE 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 AUTOZONE INC 375 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 AUTOZONE i.e., AUTOZONE and American Airlines go up and down completely randomly.
Pair Corralation between AUTOZONE and American Airlines
Assuming the 90 days trading horizon AUTOZONE INC 375 is expected to under-perform the American Airlines. But the bond apears to be less risky and, when comparing its historical volatility, AUTOZONE INC 375 is 3.76 times less risky than American Airlines. The bond trades about -0.1 of its potential returns per unit of risk. The American Airlines Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,354 in American Airlines Group on September 2, 2024 and sell it today you would earn a total of 98.00 from holding American Airlines Group or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUTOZONE INC 375 vs. American Airlines Group
Performance |
| Timeline |
| AUTOZONE INC 375 |
| American Airlines |
AUTOZONE and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTOZONE and American Airlines
The main advantage of trading using opposite AUTOZONE and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTOZONE 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.| AUTOZONE vs. AEP TEX INC | AUTOZONE vs. US BANK NATIONAL | AUTOZONE vs. Bank of America | AUTOZONE vs. GE Aerospace |
| American Airlines vs. Canadian Pacific Railway | American Airlines vs. Werner Enterprises | American Airlines vs. Canadian National Railway | American Airlines vs. CSX Corporation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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