Correlation Between American Express and Charter
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By analyzing existing cross correlation between American Express and Charter Communications Operating, you can compare the effects of market volatilities on American Express and Charter 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 Charter. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Charter.
Diversification Opportunities for American Express and Charter
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Charter is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Charter Communications Operati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications 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 Charter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of American Express i.e., American Express and Charter go up and down completely randomly.
Pair Corralation between American Express and Charter
Considering the 90-day investment horizon American Express is expected to generate 1.9 times more return on investment than Charter. However, American Express is 1.9 times more volatile than Charter Communications Operating. It trades about 0.28 of its potential returns per unit of risk. Charter Communications Operating is currently generating about 0.09 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
American Express vs. Charter Communications Operati
Performance |
| Timeline |
| American Express |
| Charter Communications |
American Express and Charter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Charter
The main advantage of trading using opposite American Express and Charter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Charter 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 Charter will offset losses from the drop in Charter's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
| Charter vs. CECO Environmental Corp | Charter vs. Jacobs Solutions | Charter vs. Getty Realty | Charter vs. National Vision Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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