This module allows you to analyze existing cross correlation between American Airlines Group Inc and Citigroup Inc. You can compare the effects of market volatilities on American Airlines and Citigroup 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 Citigroup. See also your portfolio center
. Please also check ongoing floating volatility patterns of American Airlines
American Airlines Group Inc. vs Citigroup Inc.
Considering 30-days investment horizon, American Airlines Group Inc is expected to under-perform the Citigroup. In addition to that, American Airlines is 1.67 times more volatile than Citigroup Inc. It trades about -0.22 of its total potential returns per unit of risk. Citigroup Inc is currently generating about -0.16 per unit of volatility. If you would invest 6,062 in Citigroup Inc on February 23, 2017 and sell it today you would lose (255.00) from holding Citigroup Inc or give up 4.21% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and Citigroup Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup 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 Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup Inc has no effect on the direction of American Airlines i.e. American Airlines and Citigroup 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.
Over the last 30 days Citigroup Inc has generated negative risk-adjusted returns adding no value to investors with long positions.