Correlation Between American Express and CAPITAL
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By analyzing existing cross correlation between American Express and CAPITAL ONE FINL, you can compare the effects of market volatilities on American Express and CAPITAL 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 CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and CAPITAL.
Diversification Opportunities for American Express and CAPITAL
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and CAPITAL is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CAPITAL ONE FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINL 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 CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINL has no effect on the direction of American Express i.e., American Express and CAPITAL go up and down completely randomly.
Pair Corralation between American Express and CAPITAL
Considering the 90-day investment horizon American Express is expected to generate 3.54 times more return on investment than CAPITAL. However, American Express is 3.54 times more volatile than CAPITAL ONE FINL. It trades about 0.18 of its potential returns per unit of risk. CAPITAL ONE FINL is currently generating about -0.09 per unit of risk. If you would invest 25,365 in American Express on September 2, 2024 and sell it today you would earn a total of 5,103 from holding American Express or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
American Express vs. CAPITAL ONE FINL
Performance |
| Timeline |
| American Express |
| CAPITAL ONE FINL |
American Express and CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and CAPITAL
The main advantage of trading using opposite American Express and CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, CAPITAL 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 CAPITAL will offset losses from the drop in CAPITAL's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| CAPITAL vs. Valvoline | CAPITAL vs. WiMi Hologram Cloud | CAPITAL vs. Meiwu Technology Co | CAPITAL vs. Casio Computer Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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