Correlation Between American Express and IRSA Propiedades
Can any of the company-specific risk be diversified away by investing in both American Express and IRSA Propiedades 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 Express and IRSA Propiedades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express Co and IRSA Propiedades Comerciales, you can compare the effects of market volatilities on American Express and IRSA Propiedades 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 IRSA Propiedades. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and IRSA Propiedades.
Diversification Opportunities for American Express and IRSA Propiedades
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and IRSA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express Co and IRSA Propiedades Comerciales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Propiedades Com 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 Co are associated (or correlated) with IRSA Propiedades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Propiedades Com has no effect on the direction of American Express i.e., American Express and IRSA Propiedades go up and down completely randomly.
Pair Corralation between American Express and IRSA Propiedades
If you would invest 2,257,500 in American Express Co on October 20, 2024 and sell it today you would earn a total of 215,000 from holding American Express Co or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
American Express Co vs. IRSA Propiedades Comerciales
Performance |
| Timeline |
| American Express |
| IRSA Propiedades Com |
American Express and IRSA Propiedades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and IRSA Propiedades
The main advantage of trading using opposite American Express and IRSA Propiedades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, IRSA Propiedades 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 IRSA Propiedades will offset losses from the drop in IRSA Propiedades' long position.| American Express vs. United States Steel | American Express vs. Agrometal SAI | American Express vs. Telecom Argentina | American Express vs. Compania de Transporte |
| IRSA Propiedades vs. Consultatio SA | IRSA Propiedades vs. Grupo Supervielle SA | IRSA Propiedades vs. Compania de Transporte | IRSA Propiedades vs. Banco Macro SA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |