This module allows you to analyze existing cross correlation between Sprint Corporation and American Airlines Group. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of American Airlines. See also your portfolio center. Please also check ongoing floating volatility patterns of Sprint and American Airlines.
|Horizon||30 Days Login to change|
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
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.
Sprint and American Airlines Volatility Contrast
Predicted Return Density
Sprint Corp. vs. American Airlines Group Inc
Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 1.29 times more return on investment than American Airlines. However, Sprint is 1.29 times more volatile than American Airlines Group. It trades about -0.02 of its potential returns per unit of risk. American Airlines Group is currently generating about -0.22 per unit of risk. If you would invest 723.00 in Sprint Corporation on July 18, 2019 and sell it today you would lose (32.00) from holding Sprint Corporation or give up 4.43% of portfolio value over 30 days.
Pair Corralation between Sprint and American Airlines
|Time Period||2 Months [change]|
Diversification Opportunities for Sprint and American Airlines
Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. 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 Sprint 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 Sprint Corporation 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 Sprint i.e. Sprint and American Airlines go up and down completely randomly.
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.