Correlation Between American Express and CITIGROUP
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By analyzing existing cross correlation between American Express and CITIGROUP INC 43, you can compare the effects of market volatilities on American Express and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and CITIGROUP.
Diversification Opportunities for American Express and CITIGROUP
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and CITIGROUP is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CITIGROUP INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 43 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 43 has no effect on the direction of American Express i.e., American Express and CITIGROUP go up and down completely randomly.
Pair Corralation between American Express and CITIGROUP
Considering the 90-day investment horizon American Express is expected to generate 3.07 times more return on investment than CITIGROUP. However, American Express is 3.07 times more volatile than CITIGROUP INC 43. It trades about 0.13 of its potential returns per unit of risk. CITIGROUP INC 43 is currently generating about -0.04 per unit of risk. If you would invest 23,590 in American Express on August 28, 2024 and sell it today you would earn a total of 6,931 from holding American Express or generate 29.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
American Express vs. CITIGROUP INC 43
Performance |
| Timeline |
| American Express |
| CITIGROUP INC 43 |
American Express and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and CITIGROUP
The main advantage of trading using opposite American Express and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab Corp |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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