Correlation Between American Express and Amrica
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By analyzing existing cross correlation between American Express and Amrica Mvil SAB, you can compare the effects of market volatilities on American Express and Amrica 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 Amrica. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Amrica.
Diversification Opportunities for American Express and Amrica
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Amrica is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Amrica Mvil SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amrica Mvil SAB 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 Amrica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amrica Mvil SAB has no effect on the direction of American Express i.e., American Express and Amrica go up and down completely randomly.
Pair Corralation between American Express and Amrica
Considering the 90-day investment horizon American Express is expected to generate 0.81 times more return on investment than Amrica. However, American Express is 1.23 times less risky than Amrica. It trades about 0.25 of its potential returns per unit of risk. Amrica Mvil SAB is currently generating about 0.0 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 | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
American Express vs. Amrica Mvil SAB
Performance |
| Timeline |
| American Express |
| Amrica Mvil SAB |
American Express and Amrica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Amrica
The main advantage of trading using opposite American Express and Amrica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Amrica 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 Amrica will offset losses from the drop in Amrica'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 |
| Amrica vs. JetBlue Airways Corp | Amrica vs. Volaris | Amrica vs. Anheuser Busch Inbev | Amrica vs. Air Transport Services |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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