Correlation Between American Express and El Puerto
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By analyzing existing cross correlation between American Express and El Puerto de, you can compare the effects of market volatilities on American Express and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and El Puerto.
Diversification Opportunities for American Express and El Puerto
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and LIVEPOLC-1 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding American Express and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of American Express i.e., American Express and El Puerto go up and down completely randomly.
Pair Corralation between American Express and El Puerto
Assuming the 90 days trading horizon American Express is expected to generate 2.01 times more return on investment than El Puerto. However, American Express is 2.01 times more volatile than El Puerto de. It trades about 0.33 of its potential returns per unit of risk. El Puerto de is currently generating about -0.03 per unit of risk. If you would invest 592,810 in American Express on October 20, 2024 and sell it today you would earn a total of 55,990 from holding American Express or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. El Puerto de
Performance |
| Timeline |
| American Express |
| El Puerto de |
American Express and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and El Puerto
The main advantage of trading using opposite American Express and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| American Express vs. Visa Inc | American Express vs. Mastercard Incorporated | American Express vs. Capital One Financial | American Express vs. The Western Union |
| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. Companhia Brasileira de | El Puerto vs. Grupo Famsa SAB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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