Correlation Between American Express and Innovator ETFs
Can any of the company-specific risk be diversified away by investing in both American Express and Innovator ETFs 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 Innovator ETFs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Innovator ETFs Trust, you can compare the effects of market volatilities on American Express and Innovator ETFs 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 Innovator ETFs. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Innovator ETFs.
Diversification Opportunities for American Express and Innovator ETFs
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Innovator is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Innovator ETFs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator ETFs Trust 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 Innovator ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator ETFs Trust has no effect on the direction of American Express i.e., American Express and Innovator ETFs go up and down completely randomly.
Pair Corralation between American Express and Innovator ETFs
Considering the 90-day investment horizon American Express is expected to generate 14.81 times more return on investment than Innovator ETFs. However, American Express is 14.81 times more volatile than Innovator ETFs Trust. It trades about 0.1 of its potential returns per unit of risk. Innovator ETFs Trust is currently generating about 0.21 per unit of risk. If you would invest 14,986 in American Express on August 30, 2024 and sell it today you would earn a total of 15,439 from holding American Express or generate 103.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 71.92% |
| Values | Daily Returns |
American Express vs. Innovator ETFs Trust
Performance |
| Timeline |
| American Express |
| Innovator ETFs Trust |
American Express and Innovator ETFs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Innovator ETFs
The main advantage of trading using opposite American Express and Innovator ETFs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Innovator ETFs 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 Innovator ETFs will offset losses from the drop in Innovator ETFs' long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
| Innovator ETFs vs. ABIVAX Socit Anonyme | Innovator ETFs vs. Pinnacle Sherman Multi Strategy | Innovator ETFs vs. Morningstar Unconstrained Allocation | Innovator ETFs vs. SPACE |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |