Correlation Between American Express and 023135CH7
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By analyzing existing cross correlation between American Express and AMZN 36 13 APR 32, you can compare the effects of market volatilities on American Express and 023135CH7 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 023135CH7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 023135CH7.
Diversification Opportunities for American Express and 023135CH7
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 023135CH7 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AMZN 36 13 APR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMZN 36 13 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 023135CH7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMZN 36 13 has no effect on the direction of American Express i.e., American Express and 023135CH7 go up and down completely randomly.
Pair Corralation between American Express and 023135CH7
Considering the 90-day investment horizon American Express is expected to generate 3.6 times more return on investment than 023135CH7. However, American Express is 3.6 times more volatile than AMZN 36 13 APR 32. It trades about 0.25 of its potential returns per unit of risk. AMZN 36 13 APR 32 is currently generating about 0.09 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. AMZN 36 13 APR 32
Performance |
| Timeline |
| American Express |
| AMZN 36 13 |
American Express and 023135CH7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 023135CH7
The main advantage of trading using opposite American Express and 023135CH7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 023135CH7 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 023135CH7 will offset losses from the drop in 023135CH7'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 |
| 023135CH7 vs. ATT Inc | 023135CH7 vs. Home Depot | 023135CH7 vs. Cisco Systems | 023135CH7 vs. Dupont De Nemours |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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