Correlation Between American Express and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both American Express and IMAC Holdings 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 IMAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and IMAC Holdings, you can compare the effects of market volatilities on American Express and IMAC Holdings 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 IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and IMAC Holdings.
Diversification Opportunities for American Express and IMAC Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and IMAC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding American Express and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings 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 IMAC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAC Holdings has no effect on the direction of American Express i.e., American Express and IMAC Holdings go up and down completely randomly.
Pair Corralation between American Express and IMAC Holdings
If you would invest 29,773 in American Express on November 3, 2024 and sell it today you would earn a total of 1,954 from holding American Express or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
American Express vs. IMAC Holdings
Performance |
| Timeline |
| American Express |
| IMAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and IMAC Holdings
The main advantage of trading using opposite American Express and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, IMAC Holdings 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 IMAC Holdings will offset losses from the drop in IMAC Holdings' long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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