Correlation Between American Express and APPLE
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By analyzing existing cross correlation between American Express and APPLE INC 385, you can compare the effects of market volatilities on American Express and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and APPLE.
Diversification Opportunities for American Express and APPLE
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and APPLE is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding American Express and APPLE INC 385 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 385 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 385 has no effect on the direction of American Express i.e., American Express and APPLE go up and down completely randomly.
Pair Corralation between American Express and APPLE
Considering the 90-day investment horizon American Express is expected to under-perform the APPLE. In addition to that, American Express is 1.29 times more volatile than APPLE INC 385. It trades about -0.29 of its total potential returns per unit of risk. APPLE INC 385 is currently generating about 0.31 per unit of volatility. If you would invest 8,079 in APPLE INC 385 on November 29, 2024 and sell it today you would earn a total of 475.00 from holding APPLE INC 385 or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. APPLE INC 385
Performance |
| Timeline |
| American Express |
| APPLE INC 385 |
American Express and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and APPLE
The main advantage of trading using opposite American Express and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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