Correlation Between American Express and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both American Express and Grupo Supervielle 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 Grupo Supervielle 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 Grupo Supervielle SA, you can compare the effects of market volatilities on American Express and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Grupo Supervielle.
Diversification Opportunities for American Express and Grupo Supervielle
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Grupo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding American Express Co and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of American Express i.e., American Express and Grupo Supervielle go up and down completely randomly.
Pair Corralation between American Express and Grupo Supervielle
Assuming the 90 days trading horizon American Express is expected to generate 5.41 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, American Express Co is 2.06 times less risky than Grupo Supervielle. It trades about 0.08 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 192,000 in Grupo Supervielle SA on November 2, 2024 and sell it today you would earn a total of 210,500 from holding Grupo Supervielle SA or generate 109.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express Co vs. Grupo Supervielle SA
Performance |
| Timeline |
| American Express |
| Grupo Supervielle |
American Express and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Grupo Supervielle
The main advantage of trading using opposite American Express and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| American Express vs. International Business Machines | American Express vs. Transportadora de Gas | American Express vs. Agrometal SAI | American Express vs. Grimoldi SA |
| Grupo Supervielle vs. Banco Macro SA | Grupo Supervielle vs. Banco Santander Ro | Grupo Supervielle vs. Banco Patagonia | Grupo Supervielle vs. Banco Hipotecario 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |