Correlation Between American Express and HTG Molecular
Can any of the company-specific risk be diversified away by investing in both American Express and HTG Molecular 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 HTG Molecular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and HTG Molecular Diagnostics, you can compare the effects of market volatilities on American Express and HTG Molecular 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 HTG Molecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and HTG Molecular.
Diversification Opportunities for American Express and HTG Molecular
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and HTG is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding American Express and HTG Molecular Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HTG Molecular Diagnostics 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 HTG Molecular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HTG Molecular Diagnostics has no effect on the direction of American Express i.e., American Express and HTG Molecular go up and down completely randomly.
Pair Corralation between American Express and HTG Molecular
If you would invest 18,758 in American Express on September 3, 2024 and sell it today you would earn a total of 11,710 from holding American Express or generate 62.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
American Express vs. HTG Molecular Diagnostics
Performance |
| Timeline |
| American Express |
| HTG Molecular Diagnostics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and HTG Molecular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and HTG Molecular
The main advantage of trading using opposite American Express and HTG Molecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, HTG Molecular 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 HTG Molecular will offset losses from the drop in HTG Molecular's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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