Correlation Between American Express and 031162DP2
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and AMGN 515 02 MAR 28, you can compare the effects of market volatilities on American Express and 031162DP2 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 031162DP2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 031162DP2.
Diversification Opportunities for American Express and 031162DP2
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 031162DP2 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding American Express and AMGN 515 02 MAR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGN 515 02 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 031162DP2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGN 515 02 has no effect on the direction of American Express i.e., American Express and 031162DP2 go up and down completely randomly.
Pair Corralation between American Express and 031162DP2
Considering the 90-day investment horizon American Express is expected to generate 3.44 times more return on investment than 031162DP2. However, American Express is 3.44 times more volatile than AMGN 515 02 MAR 28. It trades about 0.3 of its potential returns per unit of risk. AMGN 515 02 MAR 28 is currently generating about -0.19 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 | 100.0% |
| Values | Daily Returns |
American Express vs. AMGN 515 02 MAR 28
Performance |
| Timeline |
| American Express |
| AMGN 515 02 |
American Express and 031162DP2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 031162DP2
The main advantage of trading using opposite American Express and 031162DP2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 031162DP2 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 031162DP2 will offset losses from the drop in 031162DP2's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 031162DP2 vs. National Beverage Corp | 031162DP2 vs. Ambev SA ADR | 031162DP2 vs. SkyWest | 031162DP2 vs. Boston Beer |
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.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |