Correlation Between American Express and 025816CW7
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and AXP 405 03 MAY 29, you can compare the effects of market volatilities on American Express and 025816CW7 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 025816CW7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 025816CW7.
Diversification Opportunities for American Express and 025816CW7
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 025816CW7 is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AXP 405 03 MAY 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXP 405 03 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 025816CW7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXP 405 03 has no effect on the direction of American Express i.e., American Express and 025816CW7 go up and down completely randomly.
Pair Corralation between American Express and 025816CW7
Considering the 90-day investment horizon American Express is expected to generate 2.96 times more return on investment than 025816CW7. However, American Express is 2.96 times more volatile than AXP 405 03 MAY 29. It trades about 0.13 of its potential returns per unit of risk. AXP 405 03 MAY 29 is currently generating about -0.01 per unit of risk. If you would invest 23,593 in American Express on September 2, 2024 and sell it today you would earn a total of 6,875 from holding American Express or generate 29.14% 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. AXP 405 03 MAY 29
Performance |
| Timeline |
| American Express |
| AXP 405 03 |
American Express and 025816CW7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 025816CW7
The main advantage of trading using opposite American Express and 025816CW7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 025816CW7 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 025816CW7 will offset losses from the drop in 025816CW7's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 025816CW7 vs. Montauk Renewables | 025816CW7 vs. ASE Industrial Holding | 025816CW7 vs. Taiwan Semiconductor Manufacturing | 025816CW7 vs. Globalfoundries |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |