Correlation Between American Express and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both American Express and Mason Industrial 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 Mason Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Mason Industrial Technology, you can compare the effects of market volatilities on American Express and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Mason Industrial.
Diversification Opportunities for American Express and Mason Industrial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Mason is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of American Express i.e., American Express and Mason Industrial go up and down completely randomly.
Pair Corralation between American Express and Mason Industrial
Considering the 90-day investment horizon American Express is expected to generate 7.84 times more return on investment than Mason Industrial. However, American Express is 7.84 times more volatile than Mason Industrial Technology. It trades about 0.1 of its potential returns per unit of risk. Mason Industrial Technology is currently generating about 0.28 per unit of risk. If you would invest 15,007 in American Express on September 4, 2024 and sell it today you would earn a total of 15,219 from holding American Express or generate 101.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 7.07% |
| Values | Daily Returns |
American Express vs. Mason Industrial Technology
Performance |
| Timeline |
| American Express |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Mason Industrial
The main advantage of trading using opposite American Express and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. X Financial Class | American Express vs. LendingClub Corp |
| Mason Industrial vs. JBG SMITH Properties | Mason Industrial vs. JD Sports Fashion | Mason Industrial vs. HNI Corp | Mason Industrial vs. Warner Music Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |