Correlation Between American Express and Nuveen New
Can any of the company-specific risk be diversified away by investing in both American Express and Nuveen New 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 Nuveen New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Nuveen New York, you can compare the effects of market volatilities on American Express and Nuveen New 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 Nuveen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Nuveen New.
Diversification Opportunities for American Express and Nuveen New
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Nuveen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Nuveen New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen New York 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 Nuveen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen New York has no effect on the direction of American Express i.e., American Express and Nuveen New go up and down completely randomly.
Pair Corralation between American Express and Nuveen New
Considering the 90-day investment horizon American Express is expected to generate 4.59 times more return on investment than Nuveen New. However, American Express is 4.59 times more volatile than Nuveen New York. It trades about 0.19 of its potential returns per unit of risk. Nuveen New York is currently generating about 0.53 per unit of risk. If you would invest 29,810 in American Express on October 23, 2024 and sell it today you would earn a total of 1,446 from holding American Express or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Nuveen New York
Performance |
| Timeline |
| American Express |
| Nuveen New York |
American Express and Nuveen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Nuveen New
The main advantage of trading using opposite American Express and Nuveen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Nuveen New 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 Nuveen New will offset losses from the drop in Nuveen New's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. MSCI ACWI exAUCONSUMER | American Express vs. Sycamore Entmt Grp |
| Nuveen New vs. Western Asset Municipal | Nuveen New vs. Nuveen Massachusetts Quality | Nuveen New vs. Fiera Capital | Nuveen New vs. European Equity Closed |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |