Correlation Between American Express and APACHE
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By analyzing existing cross correlation between American Express and APACHE P 425, you can compare the effects of market volatilities on American Express and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and APACHE.
Diversification Opportunities for American Express and APACHE
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and APACHE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding American Express and APACHE P 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 425 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 425 has no effect on the direction of American Express i.e., American Express and APACHE go up and down completely randomly.
Pair Corralation between American Express and APACHE
Considering the 90-day investment horizon American Express is expected to generate 0.56 times more return on investment than APACHE. However, American Express is 1.77 times less risky than APACHE. It trades about 0.28 of its potential returns per unit of risk. APACHE P 425 is currently generating about -0.07 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
American Express vs. APACHE P 425
Performance |
| Timeline |
| American Express |
| APACHE P 425 |
American Express and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and APACHE
The main advantage of trading using opposite American Express and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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