Correlation Between American Express and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both American Express and STKD Bitcoin 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 STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and STKD Bitcoin Gold, you can compare the effects of market volatilities on American Express and STKD Bitcoin 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 STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and STKD Bitcoin.
Diversification Opportunities for American Express and STKD Bitcoin
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and STKD is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold 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 STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of American Express i.e., American Express and STKD Bitcoin go up and down completely randomly.
Pair Corralation between American Express and STKD Bitcoin
Considering the 90-day investment horizon American Express is expected to generate 3.42 times less return on investment than STKD Bitcoin. But when comparing it to its historical volatility, American Express is 2.35 times less risky than STKD Bitcoin. It trades about 0.18 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,633 in STKD Bitcoin Gold on October 22, 2024 and sell it today you would earn a total of 425.00 from holding STKD Bitcoin Gold or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
American Express vs. STKD Bitcoin Gold
Performance |
| Timeline |
| American Express |
| STKD Bitcoin Gold |
American Express and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and STKD Bitcoin
The main advantage of trading using opposite American Express and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, STKD Bitcoin 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| American Express vs. Roche Holding AG | American Express vs. Champions Oncology | American Express vs. Target 2030 Fund | American Express vs. The Monarch Cement |
| STKD Bitcoin vs. First Trust Multi Asset | STKD Bitcoin vs. Collaborative Investment Series | STKD Bitcoin vs. Akros Monthly Payout | STKD Bitcoin vs. Northern Lights |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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