Correlation Between American Express and Dragoneer Growth
Can any of the company-specific risk be diversified away by investing in both American Express and Dragoneer Growth 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 Dragoneer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Dragoneer Growth Opportunities, you can compare the effects of market volatilities on American Express and Dragoneer Growth 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 Dragoneer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Dragoneer Growth.
Diversification Opportunities for American Express and Dragoneer Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Dragoneer is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Dragoneer Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dragoneer Growth Opp 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 Dragoneer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dragoneer Growth Opp has no effect on the direction of American Express i.e., American Express and Dragoneer Growth go up and down completely randomly.
Pair Corralation between American Express and Dragoneer Growth
If you would invest 28,764 in American Express on September 14, 2024 and sell it today you would earn a total of 1,266 from holding American Express or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
American Express vs. Dragoneer Growth Opportunities
Performance |
| Timeline |
| American Express |
| Dragoneer Growth Opp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Dragoneer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Dragoneer Growth
The main advantage of trading using opposite American Express and Dragoneer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Dragoneer Growth 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 Dragoneer Growth will offset losses from the drop in Dragoneer Growth's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Upstart Holdings | American Express vs. Mastercard |
| Dragoneer Growth vs. Life Time Group | Dragoneer Growth vs. Playa Hotels Resorts | Dragoneer Growth vs. Aegon NV ADR | Dragoneer Growth vs. Aspen Insurance Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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