Correlation Between American Express and Pimco New
Can any of the company-specific risk be diversified away by investing in both American Express and Pimco 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 Pimco 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 Pimco New York, you can compare the effects of market volatilities on American Express and Pimco 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 Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Pimco New.
Diversification Opportunities for American Express and Pimco New
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Pimco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco 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 Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of American Express i.e., American Express and Pimco New go up and down completely randomly.
Pair Corralation between American Express and Pimco New
Considering the 90-day investment horizon American Express is expected to generate 2.54 times more return on investment than Pimco New. However, American Express is 2.54 times more volatile than Pimco New York. It trades about 0.15 of its potential returns per unit of risk. Pimco New York is currently generating about 0.03 per unit of risk. If you would invest 17,899 in American Express on November 9, 2024 and sell it today you would earn a total of 14,116 from holding American Express or generate 78.86% 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. Pimco New York
Performance |
| Timeline |
| American Express |
| Pimco New York |
American Express and Pimco New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Pimco New
The main advantage of trading using opposite American Express and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Pimco 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 Pimco New will offset losses from the drop in Pimco New's long position.| American Express vs. Visa Class A | American Express vs. Great Western Minerals | American Express vs. Enterprise Bancorp | American Express vs. T Rowe Price |
| Pimco New vs. Neuberger Berman IMF | Pimco New vs. Nuveen Amt Free Municipal | Pimco New vs. Delaware Investments Florida | Pimco New vs. Invesco Trust For |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |