Correlation Between American Express and AMERICAN
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By analyzing existing cross correlation between American Express and AMERICAN HONDA FINANCE, you can compare the effects of market volatilities on American Express and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and AMERICAN.
Diversification Opportunities for American Express and AMERICAN
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and AMERICAN is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AMERICAN HONDA FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN HONDA FINANCE 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN HONDA FINANCE has no effect on the direction of American Express i.e., American Express and AMERICAN go up and down completely randomly.
Pair Corralation between American Express and AMERICAN
Considering the 90-day investment horizon American Express is expected to generate 3.12 times more return on investment than AMERICAN. However, American Express is 3.12 times more volatile than AMERICAN HONDA FINANCE. It trades about 0.3 of its potential returns per unit of risk. AMERICAN HONDA FINANCE is currently generating about -0.21 per unit of risk. If you would invest 27,008 in American Express on September 1, 2024 and sell it today you would earn a total of 3,460 from holding American Express or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. AMERICAN HONDA FINANCE
Performance |
| Timeline |
| American Express |
| AMERICAN HONDA FINANCE |
American Express and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and AMERICAN
The main advantage of trading using opposite American Express and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. American Express | AMERICAN vs. Chevron Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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