Correlation Between American Express and MYMD Old
Can any of the company-specific risk be diversified away by investing in both American Express and MYMD Old 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 MYMD Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and MYMD Old, you can compare the effects of market volatilities on American Express and MYMD Old 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 MYMD Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and MYMD Old.
Diversification Opportunities for American Express and MYMD Old
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and MYMD is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding American Express and MYMD Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYMD Old 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 MYMD Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYMD Old has no effect on the direction of American Express i.e., American Express and MYMD Old go up and down completely randomly.
Pair Corralation between American Express and MYMD Old
If you would invest 182.00 in MYMD Old on October 15, 2024 and sell it today you would earn a total of 0.00 from holding MYMD Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
American Express vs. MYMD Old
Performance |
| Timeline |
| American Express |
| MYMD Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and MYMD Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and MYMD Old
The main advantage of trading using opposite American Express and MYMD Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, MYMD Old 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 MYMD Old will offset losses from the drop in MYMD Old'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 |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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