Correlation Between American Express and 05565AAN3
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By analyzing existing cross correlation between American Express and BNP 7375, you can compare the effects of market volatilities on American Express and 05565AAN3 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 05565AAN3. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 05565AAN3.
Diversification Opportunities for American Express and 05565AAN3
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 05565AAN3 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BNP 7375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 05565AAN3 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 05565AAN3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 05565AAN3 has no effect on the direction of American Express i.e., American Express and 05565AAN3 go up and down completely randomly.
Pair Corralation between American Express and 05565AAN3
Considering the 90-day investment horizon American Express is expected to under-perform the 05565AAN3. In addition to that, American Express is 50.82 times more volatile than BNP 7375. It trades about -0.04 of its total potential returns per unit of risk. BNP 7375 is currently generating about 0.31 per unit of volatility. If you would invest 9,980 in BNP 7375 on January 25, 2025 and sell it today you would earn a total of 11.00 from holding BNP 7375 or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 19.05% |
| Values | Daily Returns |
American Express vs. BNP 7375
Performance |
| Timeline |
| American Express |
| 05565AAN3 |
American Express and 05565AAN3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 05565AAN3
The main advantage of trading using opposite American Express and 05565AAN3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 05565AAN3 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 05565AAN3 will offset losses from the drop in 05565AAN3's long position.| American Express vs. Ally Financial | American Express vs. Synchrony Financial | American Express vs. Western Union Co | American Express vs. Mastercard |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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