Correlation Between American Express and 06406RAR8
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By analyzing existing cross correlation between American Express and BK 165 28 JAN 31, you can compare the effects of market volatilities on American Express and 06406RAR8 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 06406RAR8. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 06406RAR8.
Diversification Opportunities for American Express and 06406RAR8
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 06406RAR8 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BK 165 28 JAN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 165 28 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 06406RAR8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 165 28 has no effect on the direction of American Express i.e., American Express and 06406RAR8 go up and down completely randomly.
Pair Corralation between American Express and 06406RAR8
Considering the 90-day investment horizon American Express is expected to generate 3.48 times more return on investment than 06406RAR8. However, American Express is 3.48 times more volatile than BK 165 28 JAN 31. It trades about 0.26 of its potential returns per unit of risk. BK 165 28 JAN 31 is currently generating about -0.28 per unit of risk. If you would invest 26,998 in American Express on August 25, 2024 and sell it today you would earn a total of 3,132 from holding American Express or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
American Express vs. BK 165 28 JAN 31
Performance |
| Timeline |
| American Express |
| BK 165 28 |
American Express and 06406RAR8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 06406RAR8
The main advantage of trading using opposite American Express and 06406RAR8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 06406RAR8 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 06406RAR8 will offset losses from the drop in 06406RAR8's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 06406RAR8 vs. Hurco Companies | 06406RAR8 vs. SL Green Realty | 06406RAR8 vs. Inflection Point Acquisition | 06406RAR8 vs. Enersys |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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