Correlation Between American Express and ANHEUSER
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By analyzing existing cross correlation between American Express and ANHEUSER BUSCH INBEV WORLDWIDE, you can compare the effects of market volatilities on American Express and ANHEUSER 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 ANHEUSER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ANHEUSER.
Diversification Opportunities for American Express and ANHEUSER
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and ANHEUSER is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ANHEUSER BUSCH INBEV WORLDWIDE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANHEUSER BUSCH INBEV 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 ANHEUSER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANHEUSER BUSCH INBEV has no effect on the direction of American Express i.e., American Express and ANHEUSER go up and down completely randomly.
Pair Corralation between American Express and ANHEUSER
Considering the 90-day investment horizon American Express is expected to generate 2.05 times more return on investment than ANHEUSER. However, American Express is 2.05 times more volatile than ANHEUSER BUSCH INBEV WORLDWIDE. It trades about 0.28 of its potential returns per unit of risk. ANHEUSER BUSCH INBEV WORLDWIDE is currently generating about -0.07 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
American Express vs. ANHEUSER BUSCH INBEV WORLDWIDE
Performance |
| Timeline |
| American Express |
| ANHEUSER BUSCH INBEV |
American Express and ANHEUSER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ANHEUSER
The main advantage of trading using opposite American Express and ANHEUSER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ANHEUSER 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 ANHEUSER will offset losses from the drop in ANHEUSER's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
| ANHEUSER vs. AEP TEX INC | ANHEUSER vs. US BANK NATIONAL | ANHEUSER vs. Nasdaq Inc | ANHEUSER vs. Vertiv Holdings Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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