Correlation Analysis Between Citigroup and American Airlines

This module allows you to analyze existing cross correlation between Citigroup and American Airlines Group. You can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and American Airlines.
Horizon     30 Days    Login   to change
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Comparative Performance

Citigroup  
00

Risk-Adjusted Performance

Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
American Airlines  
00

Risk-Adjusted Performance

Over the last 30 days American Airlines Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Citigroup and American Airlines Volatility Contrast

 Predicted Return Density 
      Returns 

Citigroup Inc  vs.  American Airlines Group Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Citigroup is expected to generate 0.78 times more return on investment than American Airlines. However, Citigroup is 1.28 times less risky than American Airlines. It trades about -0.07 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.21 per unit of risk. If you would invest  6,810  in Citigroup on July 20, 2019 and sell it today you would lose (379.00)  from holding Citigroup or give up 5.57% of portfolio value over 30 days.

Pair Corralation between Citigroup and American Airlines

0.88
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Citigroup and American Airlines

Citigroup Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 and Citigroup 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 Citigroup 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 has no effect on the direction of Citigroup i.e. Citigroup and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.


 
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