Correlation Between American Express and 12572QAH8
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and CME GROUP INC, you can compare the effects of market volatilities on American Express and 12572QAH8 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 12572QAH8. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 12572QAH8.
Diversification Opportunities for American Express and 12572QAH8
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and 12572QAH8 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CME GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME GROUP INC 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 12572QAH8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME GROUP INC has no effect on the direction of American Express i.e., American Express and 12572QAH8 go up and down completely randomly.
Pair Corralation between American Express and 12572QAH8
Considering the 90-day investment horizon American Express is expected to generate 22.77 times less return on investment than 12572QAH8. But when comparing it to its historical volatility, American Express is 39.55 times less risky than 12572QAH8. It trades about 0.1 of its potential returns per unit of risk. CME GROUP INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,538 in CME GROUP INC on September 2, 2024 and sell it today you would lose (593.00) from holding CME GROUP INC or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.22% |
| Values | Daily Returns |
American Express vs. CME GROUP INC
Performance |
| Timeline |
| American Express |
| CME GROUP INC |
American Express and 12572QAH8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 12572QAH8
The main advantage of trading using opposite American Express and 12572QAH8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 12572QAH8 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 12572QAH8 will offset losses from the drop in 12572QAH8's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 12572QAH8 vs. AEP TEX INC | 12572QAH8 vs. US BANK NATIONAL | 12572QAH8 vs. American Express | 12572QAH8 vs. Chevron 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |