Correlation Between 26439XAC7 and American Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between DCP Midstream Operating and American Airlines Group, you can compare the effects of market volatilities on 26439XAC7 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 26439XAC7 with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26439XAC7 and American Airlines.
Diversification Opportunities for 26439XAC7 and American Airlines
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 26439XAC7 and American is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding DCP Midstream Operating and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and 26439XAC7 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 DCP Midstream Operating 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 26439XAC7 i.e., 26439XAC7 and American Airlines go up and down completely randomly.
Pair Corralation between 26439XAC7 and American Airlines
Assuming the 90 days trading horizon DCP Midstream Operating is expected to under-perform the American Airlines. But the bond apears to be less risky and, when comparing its historical volatility, DCP Midstream Operating is 4.51 times less risky than American Airlines. The bond trades about -0.02 of its potential returns per unit of risk. The American Airlines Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,424 in American Airlines Group on September 12, 2024 and sell it today you would earn a total of 334.00 from holding American Airlines Group or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 81.05% |
| Values | Daily Returns |
DCP Midstream Operating vs. American Airlines Group
Performance |
| Timeline |
| DCP Midstream Operating |
| American Airlines |
26439XAC7 and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26439XAC7 and American Airlines
The main advantage of trading using opposite 26439XAC7 and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26439XAC7 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.| 26439XAC7 vs. American Airlines Group | 26439XAC7 vs. Hawkins | 26439XAC7 vs. Mesa Air Group | 26439XAC7 vs. Axalta Coating Systems |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. United Airlines Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |