Correlation Between American Express and The Gabelli
Can any of the company-specific risk be diversified away by investing in both American Express and The Gabelli 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 The Gabelli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and The Gabelli Asset, you can compare the effects of market volatilities on American Express and The Gabelli 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 The Gabelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and The Gabelli.
Diversification Opportunities for American Express and The Gabelli
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and The is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Express and The Gabelli Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Asset 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 The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Asset has no effect on the direction of American Express i.e., American Express and The Gabelli go up and down completely randomly.
Pair Corralation between American Express and The Gabelli
Considering the 90-day investment horizon American Express is expected to under-perform the The Gabelli. In addition to that, American Express is 2.43 times more volatile than The Gabelli Asset. It trades about -0.22 of its total potential returns per unit of risk. The Gabelli Asset is currently generating about 0.17 per unit of volatility. If you would invest 4,009 in The Gabelli Asset on November 22, 2024 and sell it today you would earn a total of 73.00 from holding The Gabelli Asset or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. The Gabelli Asset
Performance |
| Timeline |
| American Express |
| Gabelli Asset |
American Express and The Gabelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and The Gabelli
The main advantage of trading using opposite American Express and The Gabelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, The Gabelli 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 The Gabelli will offset losses from the drop in The Gabelli's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| The Gabelli vs. Gabelli Esg Fund | The Gabelli vs. Gabelli Global Financial | The Gabelli vs. The Gabelli Equity | The Gabelli vs. Gamco International Growth |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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