Correlation Between American Express and 05526DBD6
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By analyzing existing cross correlation between American Express and B A T, you can compare the effects of market volatilities on American Express and 05526DBD6 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 05526DBD6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 05526DBD6.
Diversification Opportunities for American Express and 05526DBD6
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 05526DBD6 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Express and B A T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 05526DBD6 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 05526DBD6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 05526DBD6 has no effect on the direction of American Express i.e., American Express and 05526DBD6 go up and down completely randomly.
Pair Corralation between American Express and 05526DBD6
Considering the 90-day investment horizon American Express is expected to generate 2.57 times more return on investment than 05526DBD6. However, American Express is 2.57 times more volatile than B A T. It trades about 0.24 of its potential returns per unit of risk. B A T is currently generating about 0.01 per unit of risk. If you would invest 29,810 in American Express on October 23, 2024 and sell it today you would earn a total of 1,985 from holding American Express or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. B A T
Performance |
| Timeline |
| American Express |
| 05526DBD6 |
American Express and 05526DBD6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 05526DBD6
The main advantage of trading using opposite American Express and 05526DBD6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 05526DBD6 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 05526DBD6 will offset losses from the drop in 05526DBD6's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. MSCI ACWI exAUCONSUMER | American Express vs. Sycamore Entmt Grp |
| 05526DBD6 vs. AEP TEX INC | 05526DBD6 vs. US BANK NATIONAL | 05526DBD6 vs. BlueLinx Holdings | 05526DBD6 vs. Texas Pacific Land |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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