Correlation Between BluePhoenix Solutions and American Airlines
Can any of the company-specific risk be diversified away by investing in both BluePhoenix Solutions and American Airlines at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BluePhoenix Solutions and American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BluePhoenix Solutions and American Airlines Group, you can compare the effects of market volatilities on BluePhoenix Solutions 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 BluePhoenix Solutions with a short position of American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BluePhoenix Solutions and American Airlines.
Diversification Opportunities for BluePhoenix Solutions and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BluePhoenix and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BluePhoenix Solutions and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines and BluePhoenix Solutions 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 BluePhoenix Solutions 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 BluePhoenix Solutions i.e., BluePhoenix Solutions and American Airlines go up and down completely randomly.
Pair Corralation between BluePhoenix Solutions and American Airlines
If you would invest 1,145 in American Airlines Group on January 17, 2024 and sell it today you would earn a total of 149.00 from holding American Airlines Group or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
BluePhoenix Solutions vs. American Airlines Group
Performance |
| Timeline |
| BluePhoenix Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Airlines |
BluePhoenix Solutions and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BluePhoenix Solutions and American Airlines
The main advantage of trading using opposite BluePhoenix Solutions and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BluePhoenix Solutions position performs unexpectedly, American Airlines can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will offset losses from the drop in American Airlines' long position.| BluePhoenix Solutions vs. Logan Ridge Finance | BluePhoenix Solutions vs. Microbot Medical | BluePhoenix Solutions vs. Talis Biomedical Corp | BluePhoenix Solutions vs. Getty Images Holdings |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. Spirit Airlines |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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