Correlation Between American Express and KraneShares Bosera
Can any of the company-specific risk be diversified away by investing in both American Express and KraneShares Bosera 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 KraneShares Bosera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and KraneShares Bosera MSCI, you can compare the effects of market volatilities on American Express and KraneShares Bosera 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 KraneShares Bosera. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and KraneShares Bosera.
Diversification Opportunities for American Express and KraneShares Bosera
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and KraneShares is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding American Express and KraneShares Bosera MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Bosera MSCI 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 KraneShares Bosera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Bosera MSCI has no effect on the direction of American Express i.e., American Express and KraneShares Bosera go up and down completely randomly.
Pair Corralation between American Express and KraneShares Bosera
Considering the 90-day investment horizon American Express is expected to generate 1.04 times more return on investment than KraneShares Bosera. However, American Express is 1.04 times more volatile than KraneShares Bosera MSCI. It trades about 0.1 of its potential returns per unit of risk. KraneShares Bosera MSCI is currently generating about 0.0 per unit of risk. If you would invest 15,064 in American Express on August 27, 2024 and sell it today you would earn a total of 15,066 from holding American Express or generate 100.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. KraneShares Bosera MSCI
Performance |
| Timeline |
| American Express |
| KraneShares Bosera MSCI |
American Express and KraneShares Bosera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and KraneShares Bosera
The main advantage of trading using opposite American Express and KraneShares Bosera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, KraneShares Bosera 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 KraneShares Bosera will offset losses from the drop in KraneShares Bosera's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| KraneShares Bosera vs. Global X MSCI | KraneShares Bosera vs. KraneShares MSCI All | KraneShares Bosera vs. Xtrackers Harvest CSI |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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