Correlation Between American Airlines and QINGCI GAMES

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Can any of the company-specific risk be diversified away by investing in both American Airlines and QINGCI GAMES 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 American Airlines and QINGCI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Airlines Group and QINGCI GAMES INC, you can compare the effects of market volatilities on American Airlines and QINGCI GAMES 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 American Airlines with a short position of QINGCI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Airlines and QINGCI GAMES.

Diversification Opportunities for American Airlines and QINGCI GAMES

AmericanQINGCIDiversified AwayAmericanQINGCIDiversified Away100%
0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between American and QINGCI is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group and QINGCI GAMES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QINGCI GAMES INC and American Airlines 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 American Airlines Group are associated (or correlated) with QINGCI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QINGCI GAMES INC has no effect on the direction of American Airlines i.e., American Airlines and QINGCI GAMES go up and down completely randomly.

Pair Corralation between American Airlines and QINGCI GAMES

Assuming the 90 days horizon American Airlines Group is expected to generate 1.32 times more return on investment than QINGCI GAMES. However, American Airlines is 1.32 times more volatile than QINGCI GAMES INC. It trades about 0.14 of its potential returns per unit of risk. QINGCI GAMES INC is currently generating about 0.15 per unit of risk. If you would invest  1,257  in American Airlines Group on October 26, 2024 and sell it today you would earn a total of  376.00  from holding American Airlines Group or generate 29.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

American Airlines Group  vs.  QINGCI GAMES INC

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020304050
JavaScript chart by amCharts 3.21.15A1G Z56
       Timeline  
American Airlines 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in American Airlines Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, American Airlines reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan12131415161718
QINGCI GAMES INC 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in QINGCI GAMES INC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QINGCI GAMES reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0010.010.1

American Airlines and QINGCI GAMES Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.02-8.25-5.48-2.720.04982.995.988.9711.96 0.0150.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15A1G Z56
       Returns  

Pair Trading with American Airlines and QINGCI GAMES

The main advantage of trading using opposite American Airlines and QINGCI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Airlines position performs unexpectedly, QINGCI GAMES 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 QINGCI GAMES will offset losses from the drop in QINGCI GAMES's long position.
The idea behind American Airlines Group and QINGCI GAMES INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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