Correlation Between American Express and BGNE Old
Can any of the company-specific risk be diversified away by investing in both American Express and BGNE Old 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 BGNE Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and BGNE Old, you can compare the effects of market volatilities on American Express and BGNE Old 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 BGNE Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and BGNE Old.
Diversification Opportunities for American Express and BGNE Old
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and BGNE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BGNE Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGNE Old 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 BGNE Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGNE Old has no effect on the direction of American Express i.e., American Express and BGNE Old go up and down completely randomly.
Pair Corralation between American Express and BGNE Old
Considering the 90-day investment horizon American Express is expected to generate 0.57 times more return on investment than BGNE Old. However, American Express is 1.75 times less risky than BGNE Old. It trades about 0.09 of its potential returns per unit of risk. BGNE Old is currently generating about -0.19 per unit of risk. If you would invest 30,140 in American Express on November 3, 2024 and sell it today you would earn a total of 1,605 from holding American Express or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.22% |
| Values | Daily Returns |
American Express vs. BGNE Old
Performance |
| Timeline |
| American Express |
| BGNE Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and BGNE Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and BGNE Old
The main advantage of trading using opposite American Express and BGNE Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, BGNE Old 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 BGNE Old will offset losses from the drop in BGNE Old's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| BGNE Old vs. Ascendis Pharma AS | BGNE Old vs. Apellis Pharmaceuticals | BGNE Old vs. Akero Therapeutics | BGNE Old vs. Blueprint Medicines Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |