Correlation Between American Express and Aenza SAA
Can any of the company-specific risk be diversified away by investing in both American Express and Aenza SAA 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 Aenza SAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Aenza SAA, you can compare the effects of market volatilities on American Express and Aenza SAA 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 Aenza SAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Aenza SAA.
Diversification Opportunities for American Express and Aenza SAA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Aenza is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Aenza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aenza SAA 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 Aenza SAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aenza SAA has no effect on the direction of American Express i.e., American Express and Aenza SAA go up and down completely randomly.
Pair Corralation between American Express and Aenza SAA
If you would invest 27,083 in American Express on October 26, 2024 and sell it today you would earn a total of 5,504 from holding American Express or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
American Express vs. Aenza SAA
Performance |
| Timeline |
| American Express |
| Aenza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Aenza SAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Aenza SAA
The main advantage of trading using opposite American Express and Aenza SAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Aenza SAA 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 Aenza SAA will offset losses from the drop in Aenza SAA's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| Aenza SAA vs. Bowman Consulting Group | Aenza SAA vs. Api Group Corp | Aenza SAA vs. ACS Actividades de | Aenza SAA vs. ACS Actividades De |
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 Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |