Correlation Between American Express and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both American Express and Concrete Pumping 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 Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Concrete Pumping Holdings, you can compare the effects of market volatilities on American Express and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Concrete Pumping.
Diversification Opportunities for American Express and Concrete Pumping
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Concrete is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of American Express i.e., American Express and Concrete Pumping go up and down completely randomly.
Pair Corralation between American Express and Concrete Pumping
If you would invest 26,998 in American Express on August 25, 2024 and sell it today you would earn a total of 3,132 from holding American Express or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
American Express vs. Concrete Pumping Holdings
Performance |
| Timeline |
| American Express |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Concrete Pumping
The main advantage of trading using opposite American Express and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| Concrete Pumping vs. Kura Sushi USA | Concrete Pumping vs. Senmiao Technology | Concrete Pumping vs. Western Digital | Concrete Pumping vs. Texas Roadhouse |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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