Correlation Between American Express and AlphaMark Actively
Can any of the company-specific risk be diversified away by investing in both American Express and AlphaMark Actively 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 AlphaMark Actively into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and AlphaMark Actively Managed, you can compare the effects of market volatilities on American Express and AlphaMark Actively 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 AlphaMark Actively. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and AlphaMark Actively.
Diversification Opportunities for American Express and AlphaMark Actively
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and AlphaMark is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AlphaMark Actively Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaMark Actively 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 AlphaMark Actively. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaMark Actively has no effect on the direction of American Express i.e., American Express and AlphaMark Actively go up and down completely randomly.
Pair Corralation between American Express and AlphaMark Actively
Considering the 90-day investment horizon American Express is expected to generate 1.21 times more return on investment than AlphaMark Actively. However, American Express is 1.21 times more volatile than AlphaMark Actively Managed. It trades about 0.13 of its potential returns per unit of risk. AlphaMark Actively Managed is currently generating about 0.09 per unit of risk. If you would invest 23,556 in American Express on September 1, 2024 and sell it today you would earn a total of 6,912 from holding American Express or generate 29.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
American Express vs. AlphaMark Actively Managed
Performance |
| Timeline |
| American Express |
| AlphaMark Actively |
American Express and AlphaMark Actively Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and AlphaMark Actively
The main advantage of trading using opposite American Express and AlphaMark Actively positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, AlphaMark Actively 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 AlphaMark Actively will offset losses from the drop in AlphaMark Actively's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. First Trust RiverFront | AlphaMark Actively vs. Arrow DWA Tactical | AlphaMark Actively vs. First Trust Developed |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |