Correlation Between American Express and APPLE
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By analyzing existing cross correlation between American Express and APPLE INC, 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
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and APPLE is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding American Express and APPLE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 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 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 generate 1.39 times more return on investment than APPLE. However, American Express is 1.39 times more volatile than APPLE INC. It trades about 0.1 of its potential returns per unit of risk. APPLE INC is currently generating about 0.0 per unit of risk. If you would invest 14,986 in American Express on August 30, 2024 and sell it today you would earn a total of 15,439 from holding American Express or generate 103.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
American Express vs. APPLE INC
Performance |
| Timeline |
| American Express |
| APPLE INC |
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. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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