Correlation Between American Express and Sculptor Capital
Can any of the company-specific risk be diversified away by investing in both American Express and Sculptor Capital 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 Sculptor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Sculptor Capital Management, you can compare the effects of market volatilities on American Express and Sculptor Capital 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 Sculptor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Sculptor Capital.
Diversification Opportunities for American Express and Sculptor Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Sculptor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Sculptor Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sculptor Capital Man 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 Sculptor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sculptor Capital Man has no effect on the direction of American Express i.e., American Express and Sculptor Capital go up and down completely randomly.
Pair Corralation between American Express and Sculptor Capital
If you would invest 23,205 in American Express on September 4, 2024 and sell it today you would earn a total of 7,006 from holding American Express or generate 30.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
American Express vs. Sculptor Capital Management
Performance |
| Timeline |
| American Express |
| Sculptor Capital Man |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Sculptor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Sculptor Capital
The main advantage of trading using opposite American Express and Sculptor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Sculptor Capital 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 Sculptor Capital will offset losses from the drop in Sculptor Capital's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. X Financial Class | American Express vs. LendingClub Corp |
| Sculptor Capital vs. Federated Premier Municipal | Sculptor Capital vs. Blackrock Muniyield | Sculptor Capital vs. Diamond Hill Investment | Sculptor Capital vs. NXG NextGen Infrastructure |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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