Correlation Between American Express and ASTRAZENECA
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and ASTRAZENECA PLC 4, you can compare the effects of market volatilities on American Express and ASTRAZENECA 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 ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ASTRAZENECA.
Diversification Opportunities for American Express and ASTRAZENECA
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and ASTRAZENECA is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ASTRAZENECA PLC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 4 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 ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC 4 has no effect on the direction of American Express i.e., American Express and ASTRAZENECA go up and down completely randomly.
Pair Corralation between American Express and ASTRAZENECA
Considering the 90-day investment horizon American Express is expected to generate 3.45 times more return on investment than ASTRAZENECA. However, American Express is 3.45 times more volatile than ASTRAZENECA PLC 4. It trades about 0.12 of its potential returns per unit of risk. ASTRAZENECA PLC 4 is currently generating about 0.01 per unit of risk. If you would invest 16,785 in American Express on August 31, 2024 and sell it today you would earn a total of 13,683 from holding American Express or generate 81.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.13% |
| Values | Daily Returns |
American Express vs. ASTRAZENECA PLC 4
Performance |
| Timeline |
| American Express |
| ASTRAZENECA PLC 4 |
American Express and ASTRAZENECA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ASTRAZENECA
The main advantage of trading using opposite American Express and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| ASTRAZENECA vs. AEP TEX INC | ASTRAZENECA vs. US BANK NATIONAL | ASTRAZENECA vs. Bank of America | ASTRAZENECA vs. GE Aerospace |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |