Correlation Between American Express and Tigo Energy
Can any of the company-specific risk be diversified away by investing in both American Express and Tigo Energy 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 Tigo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Tigo Energy, you can compare the effects of market volatilities on American Express and Tigo Energy 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 Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Tigo Energy.
Diversification Opportunities for American Express and Tigo Energy
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Tigo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy 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 Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of American Express i.e., American Express and Tigo Energy go up and down completely randomly.
Pair Corralation between American Express and Tigo Energy
Considering the 90-day investment horizon American Express is expected to generate 0.48 times more return on investment than Tigo Energy. However, American Express is 2.09 times less risky than Tigo Energy. It trades about 0.29 of its potential returns per unit of risk. Tigo Energy is currently generating about -0.16 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. Tigo Energy
Performance |
| Timeline |
| American Express |
| Tigo Energy |
American Express and Tigo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Tigo Energy
The main advantage of trading using opposite American Express and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Tigo Energy 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 Tigo Energy will offset losses from the drop in Tigo Energy's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| Tigo Energy vs. CenterPoint Energy | Tigo Energy vs. NRG Energy | Tigo Energy vs. Black Hills | Tigo Energy vs. Everspin Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |