Correlation Between American Express and Callinex Mines
Can any of the company-specific risk be diversified away by investing in both American Express and Callinex Mines 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 Callinex Mines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Callinex Mines, you can compare the effects of market volatilities on American Express and Callinex Mines 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 Callinex Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Callinex Mines.
Diversification Opportunities for American Express and Callinex Mines
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Callinex is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Callinex Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Callinex Mines 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 Callinex Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Callinex Mines has no effect on the direction of American Express i.e., American Express and Callinex Mines go up and down completely randomly.
Pair Corralation between American Express and Callinex Mines
Considering the 90-day investment horizon American Express is expected to generate 0.52 times more return on investment than Callinex Mines. However, American Express is 1.94 times less risky than Callinex Mines. It trades about 0.19 of its potential returns per unit of risk. Callinex Mines is currently generating about -0.21 per unit of risk. If you would invest 30,188 in American Express on November 5, 2024 and sell it today you would earn a total of 1,557 from holding American Express or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Callinex Mines
Performance |
| Timeline |
| American Express |
| Callinex Mines |
American Express and Callinex Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Callinex Mines
The main advantage of trading using opposite American Express and Callinex Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Callinex Mines 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 Callinex Mines will offset losses from the drop in Callinex Mines' long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| Callinex Mines vs. West Mining Corp | Callinex Mines vs. Flying Nickel Mining | Callinex Mines vs. Forum Energy Metals | Callinex Mines vs. Jourdan Resources |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |