Correlation Between American Express and 05565QDN5
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By analyzing existing cross correlation between American Express and BP CAP MKTS, you can compare the effects of market volatilities on American Express and 05565QDN5 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 05565QDN5. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 05565QDN5.
Diversification Opportunities for American Express and 05565QDN5
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 05565QDN5 is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BP CAP MKTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP CAP MKTS 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 05565QDN5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP CAP MKTS has no effect on the direction of American Express i.e., American Express and 05565QDN5 go up and down completely randomly.
Pair Corralation between American Express and 05565QDN5
Considering the 90-day investment horizon American Express is expected to generate 5.93 times more return on investment than 05565QDN5. However, American Express is 5.93 times more volatile than BP CAP MKTS. It trades about 0.14 of its potential returns per unit of risk. BP CAP MKTS is currently generating about -0.01 per unit of risk. If you would invest 19,901 in American Express on August 28, 2024 and sell it today you would earn a total of 10,620 from holding American Express or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
American Express vs. BP CAP MKTS
Performance |
| Timeline |
| American Express |
| BP CAP MKTS |
American Express and 05565QDN5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 05565QDN5
The main advantage of trading using opposite American Express and 05565QDN5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 05565QDN5 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 05565QDN5 will offset losses from the drop in 05565QDN5's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 05565QDN5 vs. The Coca Cola | 05565QDN5 vs. JPMorgan Chase Co | 05565QDN5 vs. Dupont De Nemours | 05565QDN5 vs. Alcoa Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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