This module allows you to analyze existing cross correlation between Apple Inc and American Airlines Group Inc. You can compare the effects of market volatilities on Apple and American Airlines 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 Apple with a short position of American Airlines. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
and American Airlines
Apple Inc. vs American Airlines Group Inc.
Given the investment horizon of 30 days, Apple Inc is expected to generate 0.36 times more return on investment than American Airlines. However, Apple Inc is 2.8 times less risky than American Airlines. It trades about 0.2 of its potential returns per unit of risk. American Airlines Group Inc is currently generating about -0.22 per unit of risk. If you would invest 13,653 in Apple Inc on February 23, 2017 and sell it today you would earn a total of 413.08 from holding Apple Inc or generate 3.03% 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 Apple Inc. and American Airlines Group Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Airlines Group and Apple 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 Apple Inc are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines Group has no effect on the direction of Apple i.e. Apple and American Airlines go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days American Airlines Group Inc has generated negative risk-adjusted returns adding no value to investors with long positions.