Correlation Between American Express and 05526DBF1
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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 05526DBF1 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 05526DBF1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 05526DBF1.
Diversification Opportunities for American Express and 05526DBF1
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 05526DBF1 is -0.77. 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 05526DBF1 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 05526DBF1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 05526DBF1 has no effect on the direction of American Express i.e., American Express and 05526DBF1 go up and down completely randomly.
Pair Corralation between American Express and 05526DBF1
Considering the 90-day investment horizon American Express is expected to generate 0.68 times more return on investment than 05526DBF1. However, American Express is 1.46 times less risky than 05526DBF1. It trades about 0.28 of its potential returns per unit of risk. B A T is currently generating about -0.16 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
American Express vs. B A T
Performance |
| Timeline |
| American Express |
| 05526DBF1 |
American Express and 05526DBF1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 05526DBF1
The main advantage of trading using opposite American Express and 05526DBF1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 05526DBF1 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 05526DBF1 will offset losses from the drop in 05526DBF1's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
| 05526DBF1 vs. AEP TEX INC | 05526DBF1 vs. US BANK NATIONAL | 05526DBF1 vs. Nasdaq Inc | 05526DBF1 vs. Vertiv Holdings Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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