Pair Correlation Between American Airlines and Hawaiian Holdings

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

Pair Volatility

Considering 30-days investment horizon, American Airlines Group Inc is expected to under-perform the Hawaiian Holdings. In addition to that, American Airlines is 1.97 times more volatile than Hawaiian Holdings Inc. It trades about -0.16 of its total potential returns per unit of risk. Hawaiian Holdings Inc is currently generating about -0.24 per unit of volatility. If you would invest  5,280  in Hawaiian Holdings Inc on January 26, 2017 and sell it today you would lose (280.00)  from holding Hawaiian Holdings Inc or give up 5.3% of portfolio value over 30 days.
Correlation Coefficient
Pair Corralation between American Airlines and Hawaiian Holdings
0.56

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
Benchmark  Embed   Returns 

American Airlines Group

  

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.

Hawaiian Holdings

  

Risk-adjusted Performance

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