Correlation Between American Express and ALEXANDRIA
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By analyzing existing cross correlation between American Express and ALEXANDRIA REAL ESTATE, you can compare the effects of market volatilities on American Express and ALEXANDRIA 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 ALEXANDRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ALEXANDRIA.
Diversification Opportunities for American Express and ALEXANDRIA
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and ALEXANDRIA is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ALEXANDRIA REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEXANDRIA REAL ESTATE 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 ALEXANDRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEXANDRIA REAL ESTATE has no effect on the direction of American Express i.e., American Express and ALEXANDRIA go up and down completely randomly.
Pair Corralation between American Express and ALEXANDRIA
Considering the 90-day investment horizon American Express is expected to generate 3.32 times more return on investment than ALEXANDRIA. However, American Express is 3.32 times more volatile than ALEXANDRIA REAL ESTATE. It trades about 0.15 of its potential returns per unit of risk. ALEXANDRIA REAL ESTATE is currently generating about 0.01 per unit of risk. If you would invest 18,758 in American Express on September 3, 2024 and sell it today you would earn a total of 11,710 from holding American Express or generate 62.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
American Express vs. ALEXANDRIA REAL ESTATE
Performance |
| Timeline |
| American Express |
| ALEXANDRIA REAL ESTATE |
American Express and ALEXANDRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ALEXANDRIA
The main advantage of trading using opposite American Express and ALEXANDRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ALEXANDRIA 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 ALEXANDRIA will offset losses from the drop in ALEXANDRIA's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| ALEXANDRIA vs. MagnaChip Semiconductor | ALEXANDRIA vs. Ituran Location and | ALEXANDRIA vs. Anterix | ALEXANDRIA vs. Arm Holdings plc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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