Correlation Between American Express and FIBRA Storage
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By analyzing existing cross correlation between American Express and FIBRA Storage, you can compare the effects of market volatilities on American Express and FIBRA Storage 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 FIBRA Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and FIBRA Storage.
Diversification Opportunities for American Express and FIBRA Storage
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and FIBRA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding American Express and FIBRA Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Storage 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 FIBRA Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Storage has no effect on the direction of American Express i.e., American Express and FIBRA Storage go up and down completely randomly.
Pair Corralation between American Express and FIBRA Storage
Assuming the 90 days trading horizon American Express is expected to generate 2.66 times more return on investment than FIBRA Storage. However, American Express is 2.66 times more volatile than FIBRA Storage. It trades about 0.29 of its potential returns per unit of risk. FIBRA Storage is currently generating about 0.16 per unit of risk. If you would invest 545,500 in American Express on September 4, 2024 and sell it today you would earn a total of 82,499 from holding American Express or generate 15.12% 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. FIBRA Storage
Performance |
| Timeline |
| American Express |
| FIBRA Storage |
American Express and FIBRA Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and FIBRA Storage
The main advantage of trading using opposite American Express and FIBRA Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, FIBRA Storage 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 FIBRA Storage will offset losses from the drop in FIBRA Storage's long position.| American Express vs. Mastercard Incorporated | American Express vs. Capital One Financial | American Express vs. The Western Union | American Express vs. Gentera SAB de |
| FIBRA Storage vs. Verizon Communications | FIBRA Storage vs. DXC Technology | FIBRA Storage vs. First Majestic Silver | FIBRA Storage vs. CVS Health |
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.
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