Correlation Between American Express and Amplify Cash
Can any of the company-specific risk be diversified away by investing in both American Express and Amplify Cash 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 Amplify Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Amplify Cash Flow, you can compare the effects of market volatilities on American Express and Amplify Cash 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 Amplify Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Amplify Cash.
Diversification Opportunities for American Express and Amplify Cash
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Amplify is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Amplify Cash Flow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cash Flow 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 Amplify Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cash Flow has no effect on the direction of American Express i.e., American Express and Amplify Cash go up and down completely randomly.
Pair Corralation between American Express and Amplify Cash
Considering the 90-day investment horizon American Express is expected to generate 1.84 times more return on investment than Amplify Cash. However, American Express is 1.84 times more volatile than Amplify Cash Flow. It trades about 0.28 of its potential returns per unit of risk. Amplify Cash Flow is currently generating about 0.31 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
American Express vs. Amplify Cash Flow
Performance |
| Timeline |
| American Express |
| Amplify Cash Flow |
American Express and Amplify Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Amplify Cash
The main advantage of trading using opposite American Express and Amplify Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Amplify Cash 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 Amplify Cash will offset losses from the drop in Amplify Cash's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
| Amplify Cash vs. Freedom Day Dividend | Amplify Cash vs. Franklin Templeton ETF | Amplify Cash vs. iShares MSCI China | Amplify Cash vs. Tidal Trust II |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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