Correlation Between American Express and 126650DF4
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By analyzing existing cross correlation between American Express and CVS HEALTH P, you can compare the effects of market volatilities on American Express and 126650DF4 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 126650DF4. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 126650DF4.
Diversification Opportunities for American Express and 126650DF4
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 126650DF4 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CVS HEALTH P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS HEALTH 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 126650DF4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS HEALTH P has no effect on the direction of American Express i.e., American Express and 126650DF4 go up and down completely randomly.
Pair Corralation between American Express and 126650DF4
Considering the 90-day investment horizon American Express is expected to generate 4.48 times more return on investment than 126650DF4. However, American Express is 4.48 times more volatile than CVS HEALTH P. It trades about 0.1 of its potential returns per unit of risk. CVS HEALTH P is currently generating about 0.0 per unit of risk. If you would invest 14,696 in American Express on August 31, 2024 and sell it today you would earn a total of 15,772 from holding American Express or generate 107.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
American Express vs. CVS HEALTH P
Performance |
| Timeline |
| American Express |
| CVS HEALTH P |
American Express and 126650DF4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 126650DF4
The main advantage of trading using opposite American Express and 126650DF4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 126650DF4 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 126650DF4 will offset losses from the drop in 126650DF4's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| 126650DF4 vs. Taiwan Semiconductor Manufacturing | 126650DF4 vs. Tower Semiconductor | 126650DF4 vs. Globalfoundries | 126650DF4 vs. IPG Photonics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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