Correlation Between American Express and BANCO
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By analyzing existing cross correlation between American Express and BANCO SANTANDER SA, you can compare the effects of market volatilities on American Express and BANCO 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 BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and BANCO.
Diversification Opportunities for American Express and BANCO
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and BANCO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BANCO SANTANDER SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANCO SANTANDER SA 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 BANCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANCO SANTANDER SA has no effect on the direction of American Express i.e., American Express and BANCO go up and down completely randomly.
Pair Corralation between American Express and BANCO
Considering the 90-day investment horizon American Express is expected to generate 1.14 times more return on investment than BANCO. However, American Express is 1.14 times more volatile than BANCO SANTANDER SA. It trades about 0.28 of its potential returns per unit of risk. BANCO SANTANDER SA is currently generating about 0.06 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. BANCO SANTANDER SA
Performance |
| Timeline |
| American Express |
| BANCO SANTANDER SA |
American Express and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and BANCO
The main advantage of trading using opposite American Express and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, BANCO 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 BANCO will offset losses from the drop in BANCO's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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