Correlation Between American Express and Morixe Hermanos
Can any of the company-specific risk be diversified away by investing in both American Express and Morixe Hermanos 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 Morixe Hermanos 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 Morixe Hermanos SACI, you can compare the effects of market volatilities on American Express and Morixe Hermanos 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 Morixe Hermanos. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Morixe Hermanos.
Diversification Opportunities for American Express and Morixe Hermanos
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Morixe is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding American Express Co and Morixe Hermanos SACI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morixe Hermanos SACI 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 Morixe Hermanos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morixe Hermanos SACI has no effect on the direction of American Express i.e., American Express and Morixe Hermanos go up and down completely randomly.
Pair Corralation between American Express and Morixe Hermanos
Assuming the 90 days trading horizon American Express Co is expected to generate 0.5 times more return on investment than Morixe Hermanos. However, American Express Co is 2.02 times less risky than Morixe Hermanos. It trades about 0.08 of its potential returns per unit of risk. Morixe Hermanos SACI is currently generating about 0.01 per unit of risk. If you would invest 2,210,000 in American Express Co on November 2, 2024 and sell it today you would earn a total of 315,000 from holding American Express Co or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express Co vs. Morixe Hermanos SACI
Performance |
| Timeline |
| American Express |
| Morixe Hermanos SACI |
American Express and Morixe Hermanos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Morixe Hermanos
The main advantage of trading using opposite American Express and Morixe Hermanos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Morixe Hermanos 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 Morixe Hermanos will offset losses from the drop in Morixe Hermanos' long position.| American Express vs. Transportadora de Gas | American Express vs. Agrometal SAI | American Express vs. Harmony Gold Mining | American Express vs. Telecom Argentina |
| Morixe Hermanos vs. Ledesma SAAI | Morixe Hermanos vs. Molinos Juan Semino | Morixe Hermanos vs. Boldt SA | Morixe Hermanos vs. Agrometal SAI |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| 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 | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |