Correlation Between American Express and CARLISLE
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By analyzing existing cross correlation between American Express and CARLISLE INC 375, you can compare the effects of market volatilities on American Express and CARLISLE 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 CARLISLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and CARLISLE.
Diversification Opportunities for American Express and CARLISLE
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and CARLISLE is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CARLISLE INC 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARLISLE INC 375 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 CARLISLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARLISLE INC 375 has no effect on the direction of American Express i.e., American Express and CARLISLE go up and down completely randomly.
Pair Corralation between American Express and CARLISLE
Considering the 90-day investment horizon American Express is expected to generate 5.42 times more return on investment than CARLISLE. However, American Express is 5.42 times more volatile than CARLISLE INC 375. It trades about 0.13 of its potential returns per unit of risk. CARLISLE INC 375 is currently generating about 0.07 per unit of risk. If you would invest 23,338 in American Express on September 3, 2024 and sell it today you would earn a total of 6,888 from holding American Express or generate 29.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.2% |
| Values | Daily Returns |
American Express vs. CARLISLE INC 375
Performance |
| Timeline |
| American Express |
| CARLISLE INC 375 |
American Express and CARLISLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and CARLISLE
The main advantage of trading using opposite American Express and CARLISLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, CARLISLE 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 CARLISLE will offset losses from the drop in CARLISLE's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| CARLISLE vs. The Travelers Companies | CARLISLE vs. GE Aerospace | CARLISLE vs. Walmart | CARLISLE vs. Pfizer Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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