Pair Correlation Between American Airlines and Chevron

This module allows you to analyze existing cross correlation between American Airlines Group Inc and Chevron Corporation. You can compare the effects of market volatilities on American Airlines and Chevron 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 Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Chevron.
Investment Horizon     30 Days    Login   to change
 American Airlines Group Inc.  vs   Chevron Corp.
 Performance (%) 
Benchmark  Embed    Timeline 

Pair Volatility

Considering 30-days investment horizon, American Airlines Group Inc is expected to under-perform the Chevron. In addition to that, American Airlines is 2.09 times more volatile than Chevron Corporation. It trades about -0.22 of its total potential returns per unit of risk. Chevron Corporation is currently generating about -0.13 per unit of volatility. If you would invest  11,099  in Chevron Corporation on February 23, 2017 and sell it today you would lose (300.00)  from holding Chevron Corporation or give up 2.7% of portfolio value over 30 days.
Correlation Coefficient
Pair Corralation between American Airlines and Chevron
0.89

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of American Airlines i.e. American Airlines and Chevron go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed    Returns 

American Airlines Group

  
0 

Risk-Adjusted Performance

Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Chevron

  
0 

Risk-Adjusted Performance

Over the last 30 days Chevron Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.