This module allows you to analyze existing cross correlation between American Airlines Group and Sprint Corporation. You can compare the effects of market volatilities on American Airlines and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and Sprint.
|Horizon||30 Days Login to change|
Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, American Airlines is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.
Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively fragile forward-looking signals, Sprint reported solid returns over the last few months and may actually be approaching a breakup point.
American Airlines and Sprint Volatility Contrast
Predicted Return Density
American Airlines Group Inc vs. Sprint Corp.
Considering 30-days investment horizon, American Airlines Group is expected to under-perform the Sprint. But the stock apears to be less risky and, when comparing its historical volatility, American Airlines Group is 1.79 times less risky than Sprint. The stock trades about -0.03 of its potential returns per unit of risk. The Sprint Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Sprint Corporation on May 26, 2019 and sell it today you would earn a total of 130.00 from holding Sprint Corporation or generate 23.47% return on investment over 30 days.
Pair Corralation between American Airlines and Sprint
|Time Period||2 Months [change]|
Diversification Opportunities for American Airlines and Sprint
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 are associated (or correlated) with Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of American Airlines i.e. American Airlines and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of macroaxis ideas.