Correlation Between American Express and Columbia Seligman
Can any of the company-specific risk be diversified away by investing in both American Express and Columbia Seligman 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 Columbia Seligman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Columbia Seligman Munications, you can compare the effects of market volatilities on American Express and Columbia Seligman 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 Columbia Seligman. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Columbia Seligman.
Diversification Opportunities for American Express and Columbia Seligman
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Columbia is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Columbia Seligman Munications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Seligman 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 Columbia Seligman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Seligman has no effect on the direction of American Express i.e., American Express and Columbia Seligman go up and down completely randomly.
Pair Corralation between American Express and Columbia Seligman
Considering the 90-day investment horizon American Express is expected to under-perform the Columbia Seligman. In addition to that, American Express is 1.01 times more volatile than Columbia Seligman Munications. It trades about -0.29 of its total potential returns per unit of risk. Columbia Seligman Munications is currently generating about -0.1 per unit of volatility. If you would invest 15,227 in Columbia Seligman Munications on November 29, 2024 and sell it today you would lose (375.00) from holding Columbia Seligman Munications or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Columbia Seligman Munications
Performance |
| Timeline |
| American Express |
| Columbia Seligman |
American Express and Columbia Seligman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Columbia Seligman
The main advantage of trading using opposite American Express and Columbia Seligman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Columbia Seligman 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 Columbia Seligman will offset losses from the drop in Columbia Seligman'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 |
| Columbia Seligman vs. Short Duration Inflation | Columbia Seligman vs. Tiaa Cref Inflation Link | Columbia Seligman vs. The Hartford Inflation | Columbia Seligman vs. Credit Suisse Multialternative |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| 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 |