This module allows you to analyze existing cross correlation between American Airlines Group Inc and Alcoa Inc. You can compare the effects of market volatilities on American Airlines and Alcoa 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 American Airlines with a short position of Alcoa. See also your portfolio center
. Please also check ongoing floating volatility patterns of American Airlines
American Airlines Group Inc. vs Alcoa Inc.
Considering 30-days investment horizon, American Airlines is expected to generate 2.91 times less return on investment than Alcoa. But when comparing it to its historical volatility, American Airlines Group Inc is 1.61 times less risky than Alcoa. It trades about 0.01 of its potential returns per unit of risk. Alcoa Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,349 in Alcoa Inc on March 30, 2017 and sell it today you would earn a total of 24.00 from holding Alcoa Inc or generate 0.72% return on investment over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and Alcoa Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alcoa Inc and American Airlines 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 American Airlines Group Inc are associated (or correlated) with Alcoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcoa Inc has no effect on the direction of American Airlines i.e. American Airlines and Alcoa go up and down completely randomly.
Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Alcoa Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.