Correlation Between American Express and Anthemis Digital
Can any of the company-specific risk be diversified away by investing in both American Express and Anthemis Digital 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 Anthemis Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Anthemis Digital Acquisitions, you can compare the effects of market volatilities on American Express and Anthemis Digital 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 Anthemis Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Anthemis Digital.
Diversification Opportunities for American Express and Anthemis Digital
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Anthemis is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Anthemis Digital Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anthemis Digital Acq 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 Anthemis Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anthemis Digital Acq has no effect on the direction of American Express i.e., American Express and Anthemis Digital go up and down completely randomly.
Pair Corralation between American Express and Anthemis Digital
If you would invest 16,875 in American Express on August 26, 2024 and sell it today you would earn a total of 13,255 from holding American Express or generate 78.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
American Express vs. Anthemis Digital Acquisitions
Performance |
| Timeline |
| American Express |
| Anthemis Digital Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Anthemis Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Anthemis Digital
The main advantage of trading using opposite American Express and Anthemis Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Anthemis Digital 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 Anthemis Digital will offset losses from the drop in Anthemis Digital's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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