Correlation Between American Express and MeVis Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and MeVis Medical Solutions, you can compare the effects of market volatilities on American Express and MeVis Medical 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 Express with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and MeVis Medical.
Diversification Opportunities for American Express and MeVis Medical
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and MeVis is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Express and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions and American Express 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 Express are associated (or correlated) with MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of American Express i.e., American Express and MeVis Medical go up and down completely randomly.
Pair Corralation between American Express and MeVis Medical
Assuming the 90 days trading horizon American Express is expected to generate 1.64 times more return on investment than MeVis Medical. However, American Express is 1.64 times more volatile than MeVis Medical Solutions. It trades about 0.14 of its potential returns per unit of risk. MeVis Medical Solutions is currently generating about -0.06 per unit of risk. If you would invest 21,374 in American Express on September 3, 2024 and sell it today you would earn a total of 7,641 from holding American Express or generate 35.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. MeVis Medical Solutions
Performance |
| Timeline |
| American Express |
| MeVis Medical Solutions |
American Express and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and MeVis Medical
The main advantage of trading using opposite American Express and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, MeVis Medical 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.| American Express vs. CVR Medical Corp | American Express vs. UNIVMUSIC GRPADR050 | American Express vs. MeVis Medical Solutions | American Express vs. Apollo Medical Holdings |
| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |