Correlation Between American Express and Gardiner Healthcare
Can any of the company-specific risk be diversified away by investing in both American Express and Gardiner Healthcare 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 Gardiner Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Gardiner Healthcare Acquisitions, you can compare the effects of market volatilities on American Express and Gardiner Healthcare 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 Gardiner Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Gardiner Healthcare.
Diversification Opportunities for American Express and Gardiner Healthcare
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Gardiner is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Gardiner Healthcare Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gardiner Healthcare 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 Gardiner Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gardiner Healthcare has no effect on the direction of American Express i.e., American Express and Gardiner Healthcare go up and down completely randomly.
Pair Corralation between American Express and Gardiner Healthcare
If you would invest 23,556 in American Express on August 30, 2024 and sell it today you would earn a total of 6,869 from holding American Express or generate 29.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
American Express vs. Gardiner Healthcare Acquisitio
Performance |
| Timeline |
| American Express |
| Gardiner Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Gardiner Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Gardiner Healthcare
The main advantage of trading using opposite American Express and Gardiner Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Gardiner Healthcare 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 Gardiner Healthcare will offset losses from the drop in Gardiner Healthcare's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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