Correlation Between American Express and ALTRIA
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By analyzing existing cross correlation between American Express and ALTRIA GROUP INC, you can compare the effects of market volatilities on American Express and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ALTRIA.
Diversification Opportunities for American Express and ALTRIA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and ALTRIA is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP INC 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of American Express i.e., American Express and ALTRIA go up and down completely randomly.
Pair Corralation between American Express and ALTRIA
Considering the 90-day investment horizon American Express is expected to generate 0.83 times more return on investment than ALTRIA. However, American Express is 1.21 times less risky than ALTRIA. It trades about 0.28 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about -0.11 per unit of risk. If you would invest 27,269 in American Express on September 2, 2024 and sell it today you would earn a total of 3,199 from holding American Express or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. ALTRIA GROUP INC
Performance |
| Timeline |
| American Express |
| ALTRIA GROUP INC |
American Express and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ALTRIA
The main advantage of trading using opposite American Express and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| ALTRIA vs. Playstudios | ALTRIA vs. Marfrig Global Foods | ALTRIA vs. FitLife Brands, Common | ALTRIA vs. Celsius Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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