Correlation Between American Express and KraneShares Artificial
Can any of the company-specific risk be diversified away by investing in both American Express and KraneShares Artificial 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 KraneShares Artificial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and KraneShares Artificial Intelligence, you can compare the effects of market volatilities on American Express and KraneShares Artificial 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 KraneShares Artificial. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and KraneShares Artificial.
Diversification Opportunities for American Express and KraneShares Artificial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and KraneShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Express and KraneShares Artificial Intelli in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Artificial 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 KraneShares Artificial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Artificial has no effect on the direction of American Express i.e., American Express and KraneShares Artificial go up and down completely randomly.
Pair Corralation between American Express and KraneShares Artificial
Considering the 90-day investment horizon American Express is expected to generate 0.91 times more return on investment than KraneShares Artificial. However, American Express is 1.1 times less risky than KraneShares Artificial. It trades about 0.17 of its potential returns per unit of risk. KraneShares Artificial Intelligence is currently generating about 0.09 per unit of risk. If you would invest 16,662 in American Express on September 2, 2024 and sell it today you would earn a total of 13,806 from holding American Express or generate 82.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 38.71% |
| Values | Daily Returns |
American Express vs. KraneShares Artificial Intelli
Performance |
| Timeline |
| American Express |
| KraneShares Artificial |
American Express and KraneShares Artificial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and KraneShares Artificial
The main advantage of trading using opposite American Express and KraneShares Artificial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, KraneShares Artificial 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 KraneShares Artificial will offset losses from the drop in KraneShares Artificial's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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