Correlation Between American Express and ALLSTATE
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By analyzing existing cross correlation between American Express and ALLSTATE P 555, you can compare the effects of market volatilities on American Express and ALLSTATE 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 ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ALLSTATE.
Diversification Opportunities for American Express and ALLSTATE
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and ALLSTATE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ALLSTATE P 555 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 555 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 ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 555 has no effect on the direction of American Express i.e., American Express and ALLSTATE go up and down completely randomly.
Pair Corralation between American Express and ALLSTATE
Considering the 90-day investment horizon American Express is expected to generate 1.72 times more return on investment than ALLSTATE. However, American Express is 1.72 times more volatile than ALLSTATE P 555. It trades about 0.18 of its potential returns per unit of risk. ALLSTATE P 555 is currently generating about -0.04 per unit of risk. If you would invest 25,365 in American Express on August 31, 2024 and sell it today you would earn a total of 5,060 from holding American Express or generate 19.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
American Express vs. ALLSTATE P 555
Performance |
| Timeline |
| American Express |
| ALLSTATE P 555 |
American Express and ALLSTATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ALLSTATE
The main advantage of trading using opposite American Express and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE'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 |
| ALLSTATE vs. Titan Machinery | ALLSTATE vs. Dave Busters Entertainment | ALLSTATE vs. Meiwu Technology Co | ALLSTATE vs. Simon Property Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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