Correlation Between American Express and Grindrod Shipping
Can any of the company-specific risk be diversified away by investing in both American Express and Grindrod Shipping 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 Grindrod Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Grindrod Shipping Holdings, you can compare the effects of market volatilities on American Express and Grindrod Shipping 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 Grindrod Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Grindrod Shipping.
Diversification Opportunities for American Express and Grindrod Shipping
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Grindrod is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Grindrod Shipping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindrod Shipping 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 Grindrod Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindrod Shipping has no effect on the direction of American Express i.e., American Express and Grindrod Shipping go up and down completely randomly.
Pair Corralation between American Express and Grindrod Shipping
If you would invest 27,019 in American Express on September 3, 2024 and sell it today you would earn a total of 3,449 from holding American Express or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. Grindrod Shipping Holdings
Performance |
| Timeline |
| American Express |
| Grindrod Shipping |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Grindrod Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Grindrod Shipping
The main advantage of trading using opposite American Express and Grindrod Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Grindrod Shipping 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 Grindrod Shipping will offset losses from the drop in Grindrod Shipping's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| Grindrod Shipping vs. Star Bulk Carriers | Grindrod Shipping vs. Golden Ocean Group | Grindrod Shipping vs. Global Ship Lease | Grindrod Shipping vs. Diana Shipping |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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