Correlation Between American Express and 01748TAC5
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By analyzing existing cross correlation between American Express and ALLE 5411 01 JUL 32, you can compare the effects of market volatilities on American Express and 01748TAC5 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 01748TAC5. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 01748TAC5.
Diversification Opportunities for American Express and 01748TAC5
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 01748TAC5 is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ALLE 5411 01 JUL 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLE 5411 01 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 01748TAC5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLE 5411 01 has no effect on the direction of American Express i.e., American Express and 01748TAC5 go up and down completely randomly.
Pair Corralation between American Express and 01748TAC5
Considering the 90-day investment horizon American Express is expected to generate 4.7 times more return on investment than 01748TAC5. However, American Express is 4.7 times more volatile than ALLE 5411 01 JUL 32. It trades about 0.25 of its potential returns per unit of risk. ALLE 5411 01 JUL 32 is currently generating about -0.02 per unit of risk. If you would invest 27,408 in American Express on August 31, 2024 and sell it today you would earn a total of 3,017 from holding American Express or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. ALLE 5411 01 JUL 32
Performance |
| Timeline |
| American Express |
| ALLE 5411 01 |
American Express and 01748TAC5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 01748TAC5
The main advantage of trading using opposite American Express and 01748TAC5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 01748TAC5 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 01748TAC5 will offset losses from the drop in 01748TAC5's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| 01748TAC5 vs. American Airlines Group | 01748TAC5 vs. Allegiant Travel | 01748TAC5 vs. Alaska Air Group | 01748TAC5 vs. Sun Country Airlines |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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