Correlation Between American Express and Kaspien Holdings
Can any of the company-specific risk be diversified away by investing in both American Express and Kaspien 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 Kaspien 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 Kaspien Holdings, you can compare the effects of market volatilities on American Express and Kaspien 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 Kaspien Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Kaspien Holdings.
Diversification Opportunities for American Express and Kaspien Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Kaspien is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien 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 Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of American Express i.e., American Express and Kaspien Holdings go up and down completely randomly.
Pair Corralation between American Express and Kaspien Holdings
If you would invest 29,810 in American Express on October 23, 2024 and sell it today you would earn a total of 1,985 from holding American Express or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
American Express vs. Kaspien Holdings
Performance |
| Timeline |
| American Express |
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Kaspien Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Kaspien Holdings
The main advantage of trading using opposite American Express and Kaspien Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Kaspien 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 Kaspien Holdings will offset losses from the drop in Kaspien Holdings' long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. MSCI ACWI exAUCONSUMER | American Express vs. Sycamore Entmt Grp |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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