Correlation Between American Express and AMGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and AMGEN INC 64, you can compare the effects of market volatilities on American Express and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and AMGEN.
Diversification Opportunities for American Express and AMGEN
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and AMGEN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AMGEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 64 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 64 has no effect on the direction of American Express i.e., American Express and AMGEN go up and down completely randomly.
Pair Corralation between American Express and AMGEN
Considering the 90-day investment horizon American Express is expected to generate 1.24 times more return on investment than AMGEN. However, American Express is 1.24 times more volatile than AMGEN INC 64. It trades about 0.3 of its potential returns per unit of risk. AMGEN INC 64 is currently generating about 0.0 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 | 76.19% |
| Values | Daily Returns |
American Express vs. AMGEN INC 64
Performance |
| Timeline |
| American Express |
| AMGEN INC 64 |
American Express and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and AMGEN
The main advantage of trading using opposite American Express and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |