Correlation Between American Express and ARAMARK
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and ARAMARK SVCS INC, you can compare the effects of market volatilities on American Express and ARAMARK 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 ARAMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ARAMARK.
Diversification Opportunities for American Express and ARAMARK
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and ARAMARK is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ARAMARK SVCS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARAMARK SVCS 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 ARAMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARAMARK SVCS INC has no effect on the direction of American Express i.e., American Express and ARAMARK go up and down completely randomly.
Pair Corralation between American Express and ARAMARK
Considering the 90-day investment horizon American Express is expected to generate 6.29 times more return on investment than ARAMARK. However, American Express is 6.29 times more volatile than ARAMARK SVCS INC. It trades about 0.17 of its potential returns per unit of risk. ARAMARK SVCS INC is currently generating about -0.04 per unit of risk. If you would invest 16,662 in American Express on September 2, 2024 and sell it today you would earn a total of 13,806 from holding American Express or generate 82.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.52% |
| Values | Daily Returns |
American Express vs. ARAMARK SVCS INC
Performance |
| Timeline |
| American Express |
| ARAMARK SVCS INC |
American Express and ARAMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ARAMARK
The main advantage of trading using opposite American Express and ARAMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ARAMARK 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 ARAMARK will offset losses from the drop in ARAMARK's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| ARAMARK vs. IPG Photonics | ARAMARK vs. Olympic Steel | ARAMARK vs. Summit Materials | ARAMARK vs. Parker Hannifin |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |