Correlation Between American Express and TLGY Acquisition
Can any of the company-specific risk be diversified away by investing in both American Express and TLGY Acquisition 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 TLGY Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and TLGY Acquisition Corp, you can compare the effects of market volatilities on American Express and TLGY Acquisition 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 TLGY Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and TLGY Acquisition.
Diversification Opportunities for American Express and TLGY Acquisition
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and TLGY is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding American Express and TLGY Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLGY Acquisition Corp 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 TLGY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLGY Acquisition Corp has no effect on the direction of American Express i.e., American Express and TLGY Acquisition go up and down completely randomly.
Pair Corralation between American Express and TLGY Acquisition
Considering the 90-day investment horizon American Express is expected to generate 12.69 times more return on investment than TLGY Acquisition. However, American Express is 12.69 times more volatile than TLGY Acquisition Corp. It trades about 0.13 of its potential returns per unit of risk. TLGY Acquisition Corp is currently generating about 0.14 per unit of risk. If you would invest 21,532 in American Express on September 1, 2024 and sell it today you would earn a total of 8,936 from holding American Express or generate 41.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
American Express vs. TLGY Acquisition Corp
Performance |
| Timeline |
| American Express |
| TLGY Acquisition Corp |
American Express and TLGY Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and TLGY Acquisition
The main advantage of trading using opposite American Express and TLGY Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, TLGY Acquisition 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 TLGY Acquisition will offset losses from the drop in TLGY Acquisition's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |