Correlation Between American Express and LumiraDx
Can any of the company-specific risk be diversified away by investing in both American Express and LumiraDx 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 LumiraDx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and LumiraDx, you can compare the effects of market volatilities on American Express and LumiraDx 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 LumiraDx. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and LumiraDx.
Diversification Opportunities for American Express and LumiraDx
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and LumiraDx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and LumiraDx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LumiraDx 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 LumiraDx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LumiraDx has no effect on the direction of American Express i.e., American Express and LumiraDx go up and down completely randomly.
Pair Corralation between American Express and LumiraDx
If you would invest (100.00) in LumiraDx on November 18, 2024 and sell it today you would earn a total of 100.00 from holding LumiraDx or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. LumiraDx
Performance |
| Timeline |
| American Express |
| LumiraDx |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
American Express and LumiraDx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and LumiraDx
The main advantage of trading using opposite American Express and LumiraDx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, LumiraDx 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 LumiraDx will offset losses from the drop in LumiraDx's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| LumiraDx vs. Fonar | LumiraDx vs. Burning Rock Biotech | LumiraDx vs. Sera Prognostics | LumiraDx vs. Exagen Inc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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