Correlation Between American Express and Troika Media
Can any of the company-specific risk be diversified away by investing in both American Express and Troika Media 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 Troika Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Troika Media Group, you can compare the effects of market volatilities on American Express and Troika Media 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 Troika Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Troika Media.
Diversification Opportunities for American Express and Troika Media
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Troika is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Troika Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troika Media Group 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 Troika Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troika Media Group has no effect on the direction of American Express i.e., American Express and Troika Media go up and down completely randomly.
Pair Corralation between American Express and Troika Media
If you would invest 27,123 in American Express on August 24, 2024 and sell it today you would earn a total of 3,007 from holding American Express or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
American Express vs. Troika Media Group
Performance |
| Timeline |
| American Express |
| Troika Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Troika Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Troika Media
The main advantage of trading using opposite American Express and Troika Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Troika Media 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 Troika Media will offset losses from the drop in Troika Media's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. SoFi Technologies | American Express vs. Coca Cola Consolidated |
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.
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