Correlation Between American Express and Bird Global
Can any of the company-specific risk be diversified away by investing in both American Express and Bird Global 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 Bird Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Bird Global, you can compare the effects of market volatilities on American Express and Bird Global 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 Bird Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Bird Global.
Diversification Opportunities for American Express and Bird Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Bird is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Bird Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bird Global 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 Bird Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bird Global has no effect on the direction of American Express i.e., American Express and Bird Global go up and down completely randomly.
Pair Corralation between American Express and Bird Global
If you would invest (100.00) in Bird Global on November 28, 2024 and sell it today you would earn a total of 100.00 from holding Bird Global or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. Bird Global
Performance |
| Timeline |
| American Express |
| Bird Global |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
American Express and Bird Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Bird Global
The main advantage of trading using opposite American Express and Bird Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Bird Global 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 Bird Global will offset losses from the drop in Bird Global's long position.| American Express vs. LM Funding America | American Express vs. Eason Technology Limited | American Express vs. Nisun International Enterprise | American Express vs. Qudian Inc |
| Bird Global vs. FlexShopper | Bird Global vs. AZN Capital Corp | Bird Global vs. Fortress Transportation and | Bird Global vs. Ashtead Gro |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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