Correlation Between American Express and Citrine Global
Can any of the company-specific risk be diversified away by investing in both American Express and Citrine 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 Citrine 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 Citrine Global Corp, you can compare the effects of market volatilities on American Express and Citrine 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 Citrine Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Citrine Global.
Diversification Opportunities for American Express and Citrine Global
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Citrine is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Citrine Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citrine Global Corp 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 Citrine Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citrine Global Corp has no effect on the direction of American Express i.e., American Express and Citrine Global go up and down completely randomly.
Pair Corralation between American Express and Citrine Global
If you would invest 27,408 in American Express on August 31, 2024 and sell it today you would earn a total of 3,017 from holding American Express or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Citrine Global Corp
Performance |
| Timeline |
| American Express |
| Citrine Global Corp |
American Express and Citrine Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Citrine Global
The main advantage of trading using opposite American Express and Citrine Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Citrine 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 Citrine Global will offset losses from the drop in Citrine Global's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| Citrine Global vs. Cintas | Citrine Global vs. Thomson Reuters Corp | Citrine Global vs. Global Payments | Citrine Global vs. RB Global |
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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