This module allows you to analyze existing cross correlation between Sprint Corporation and American Airlines Group Inc. 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
Sprint Corp. vs American Airlines Group Inc.
Taking into account the 30 trading days horizon, Sprint Corporation is expected to generate 0.64 times more return on investment than American Airlines. However, Sprint Corporation is 1.56 times less risky than American Airlines. It trades about 0.24 of its potential returns per unit of risk. American Airlines Group Inc is currently generating about 0.12 per unit of risk. If you would invest 848.00 in Sprint Corporation on March 29, 2017 and sell it today you would earn a total of 55.00 from holding Sprint Corporation or generate 6.49% return on investment over 30 days.
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Very weak diversification
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 Group 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 Group has no effect on the direction of Sprint i.e. Sprint and American Airlines go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Sprint Corporation are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.