Correlation Between American Express and CHUBB
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and CHUBB P 6, you can compare the effects of market volatilities on American Express and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and CHUBB.
Diversification Opportunities for American Express and CHUBB
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and CHUBB is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of American Express i.e., American Express and CHUBB go up and down completely randomly.
Pair Corralation between American Express and CHUBB
Considering the 90-day investment horizon American Express is expected to generate 1.91 times more return on investment than CHUBB. However, American Express is 1.91 times more volatile than CHUBB P 6. It trades about 0.17 of its potential returns per unit of risk. CHUBB P 6 is currently generating about 0.04 per unit of risk. If you would invest 16,662 in American Express on September 2, 2024 and sell it today you would earn a total of 13,806 from holding American Express or generate 82.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.61% |
| Values | Daily Returns |
American Express vs. CHUBB P 6
Performance |
| Timeline |
| American Express |
| CHUBB P 6 |
American Express and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and CHUBB
The main advantage of trading using opposite American Express and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| CHUBB vs. Perseus Mining Limited | CHUBB vs. Definitive Healthcare Corp | CHUBB vs. Mangazeya Mining | CHUBB vs. Zijin Mining Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |