Correlation Between American Express and Anpac Bio
Can any of the company-specific risk be diversified away by investing in both American Express and Anpac Bio 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 Anpac Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Anpac Bio Medical, you can compare the effects of market volatilities on American Express and Anpac Bio 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 Anpac Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Anpac Bio.
Diversification Opportunities for American Express and Anpac Bio
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Anpac is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Anpac Bio Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anpac Bio Medical 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 Anpac Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anpac Bio Medical has no effect on the direction of American Express i.e., American Express and Anpac Bio go up and down completely randomly.
Pair Corralation between American Express and Anpac Bio
If you would invest 27,019 in American Express on September 4, 2024 and sell it today you would earn a total of 3,207 from holding American Express or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
American Express vs. Anpac Bio Medical
Performance |
| Timeline |
| American Express |
| Anpac Bio Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Anpac Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Anpac Bio
The main advantage of trading using opposite American Express and Anpac Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Anpac Bio 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 Anpac Bio will offset losses from the drop in Anpac Bio's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. X Financial Class | American Express vs. LendingClub Corp |
| Anpac Bio vs. Anebulo Pharmaceuticals | Anpac Bio vs. Aerovate Therapeutics | Anpac Bio vs. Acrivon Therapeutics, Common | Anpac Bio vs. Opthea |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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