Correlation Between GENERAL and American Airlines
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By analyzing existing cross correlation between GENERAL ELEC CAP and American Airlines Group, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and American Airlines.
Diversification Opportunities for GENERAL and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GENERAL and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and GENERAL 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 GENERAL ELEC CAP 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 GENERAL i.e., GENERAL and American Airlines go up and down completely randomly.
Pair Corralation between GENERAL and American Airlines
If you would invest 1,391 in American Airlines Group on September 13, 2024 and sell it today you would earn a total of 333.00 from holding American Airlines Group or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. American Airlines Group
Performance |
| Timeline |
| GENERAL ELEC CAP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Airlines |
GENERAL and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and American Airlines
The main advantage of trading using opposite GENERAL and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Anheuser Busch Inbev | GENERAL vs. FitLife Brands, Common | GENERAL vs. Where Food Comes | GENERAL vs. Compania Cervecerias Unidas |
| American Airlines vs. Southwest Airlines | American Airlines vs. United Airlines Holdings | American Airlines vs. Frontier Group 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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