Correlation Between American Express and 06051GGC7
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By analyzing existing cross correlation between American Express and BANK AMER P, you can compare the effects of market volatilities on American Express and 06051GGC7 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 06051GGC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 06051GGC7.
Diversification Opportunities for American Express and 06051GGC7
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 06051GGC7 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 06051GGC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of American Express i.e., American Express and 06051GGC7 go up and down completely randomly.
Pair Corralation between American Express and 06051GGC7
Considering the 90-day investment horizon American Express is expected to generate 3.5 times more return on investment than 06051GGC7. However, American Express is 3.5 times more volatile than BANK AMER P. It trades about 0.29 of its potential returns per unit of risk. BANK AMER P is currently generating about -0.01 per unit of risk. If you would invest 27,147 in American Express on August 27, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. BANK AMER P
Performance |
| Timeline |
| American Express |
| BANK AMER P |
American Express and 06051GGC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 06051GGC7
The main advantage of trading using opposite American Express and 06051GGC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 06051GGC7 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 06051GGC7 will offset losses from the drop in 06051GGC7's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 06051GGC7 vs. AEP TEX INC | 06051GGC7 vs. US BANK NATIONAL | 06051GGC7 vs. Eat Beyond Global | 06051GGC7 vs. Charles Schwab 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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