Correlation Between American Express and 06406RBK2
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By analyzing existing cross correlation between American Express and BK 4596 26 JUL 30, you can compare the effects of market volatilities on American Express and 06406RBK2 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 06406RBK2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 06406RBK2.
Diversification Opportunities for American Express and 06406RBK2
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 06406RBK2 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BK 4596 26 JUL 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 4596 26 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 06406RBK2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 4596 26 has no effect on the direction of American Express i.e., American Express and 06406RBK2 go up and down completely randomly.
Pair Corralation between American Express and 06406RBK2
Considering the 90-day investment horizon American Express is expected to generate 2.79 times more return on investment than 06406RBK2. However, American Express is 2.79 times more volatile than BK 4596 26 JUL 30. It trades about 0.32 of its potential returns per unit of risk. BK 4596 26 JUL 30 is currently generating about -0.14 per unit of risk. If you would invest 27,019 in American Express on September 3, 2024 and sell it today you would earn a total of 3,449 from holding American Express or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
American Express vs. BK 4596 26 JUL 30
Performance |
| Timeline |
| American Express |
| BK 4596 26 |
American Express and 06406RBK2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 06406RBK2
The main advantage of trading using opposite American Express and 06406RBK2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 06406RBK2 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 06406RBK2 will offset losses from the drop in 06406RBK2's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| 06406RBK2 vs. AEP TEX INC | 06406RBK2 vs. US BANK NATIONAL | 06406RBK2 vs. MetLife | 06406RBK2 vs. Brera Holdings PLC |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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