Correlation Between 988498AK7 and American Airlines
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By analyzing existing cross correlation between Yum Brands 535 and American Airlines Group, you can compare the effects of market volatilities on 988498AK7 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 988498AK7 with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of 988498AK7 and American Airlines.
Diversification Opportunities for 988498AK7 and American Airlines
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 988498AK7 and American is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Yum Brands 535 and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and 988498AK7 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 Yum Brands 535 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 988498AK7 i.e., 988498AK7 and American Airlines go up and down completely randomly.
Pair Corralation between 988498AK7 and American Airlines
Assuming the 90 days trading horizon Yum Brands 535 is expected to under-perform the American Airlines. In addition to that, 988498AK7 is 1.03 times more volatile than American Airlines Group. It trades about -0.24 of its total potential returns per unit of risk. American Airlines Group is currently generating about 0.27 per unit of volatility. If you would invest 1,401 in American Airlines Group on September 14, 2024 and sell it today you would earn a total of 323.00 from holding American Airlines Group or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Yum Brands 535 vs. American Airlines Group
Performance |
| Timeline |
| Yum Brands 535 |
| American Airlines |
988498AK7 and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 988498AK7 and American Airlines
The main advantage of trading using opposite 988498AK7 and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 988498AK7 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.| 988498AK7 vs. American Airlines Group | 988498AK7 vs. Sun Country Airlines | 988498AK7 vs. Mesa Air Group | 988498AK7 vs. Ryanair Holdings PLC |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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