Correlation Between American Express and AdTheorent Holding
Can any of the company-specific risk be diversified away by investing in both American Express and AdTheorent Holding 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 AdTheorent Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and AdTheorent Holding, you can compare the effects of market volatilities on American Express and AdTheorent Holding 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 AdTheorent Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and AdTheorent Holding.
Diversification Opportunities for American Express and AdTheorent Holding
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and AdTheorent is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AdTheorent Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdTheorent Holding 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 AdTheorent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdTheorent Holding has no effect on the direction of American Express i.e., American Express and AdTheorent Holding go up and down completely randomly.
Pair Corralation between American Express and AdTheorent Holding
If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,410 from holding American Express or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
American Express vs. AdTheorent Holding
Performance |
| Timeline |
| American Express |
| AdTheorent Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and AdTheorent Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and AdTheorent Holding
The main advantage of trading using opposite American Express and AdTheorent Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, AdTheorent Holding 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 AdTheorent Holding will offset losses from the drop in AdTheorent Holding's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
| AdTheorent Holding vs. ADS TEC ENERGY PLC | AdTheorent Holding vs. CompoSecure | AdTheorent Holding vs. Dave Warrants | AdTheorent Holding vs. Aurora Innovation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |