Correlation Between American Express and Voya Us
Can any of the company-specific risk be diversified away by investing in both American Express and Voya Us 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 Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Voya Stock Index, you can compare the effects of market volatilities on American Express and Voya Us 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 Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Voya Us.
Diversification Opportunities for American Express and Voya Us
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Voya is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Voya Stock Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Stock Index 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 Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Stock Index has no effect on the direction of American Express i.e., American Express and Voya Us go up and down completely randomly.
Pair Corralation between American Express and Voya Us
Considering the 90-day investment horizon American Express is expected to generate 1.67 times more return on investment than Voya Us. However, American Express is 1.67 times more volatile than Voya Stock Index. It trades about 0.18 of its potential returns per unit of risk. Voya Stock Index is currently generating about 0.11 per unit of risk. If you would invest 15,118 in American Express on September 1, 2024 and sell it today you would earn a total of 15,350 from holding American Express or generate 101.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
American Express vs. Voya Stock Index
Performance |
| Timeline |
| American Express |
| Voya Stock Index |
American Express and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Voya Us
The main advantage of trading using opposite American Express and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Voya Us 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 Voya Us will offset losses from the drop in Voya Us' long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| Voya Us vs. Live Oak Health | Voya Us vs. Deutsche Health And | Voya Us vs. Alphacentric Lifesci Healthcare | Voya Us vs. Health Care Fund |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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