Correlation Between American Express and 191216CT5
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By analyzing existing cross correlation between American Express and COCA COLA CO, you can compare the effects of market volatilities on American Express and 191216CT5 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 191216CT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 191216CT5.
Diversification Opportunities for American Express and 191216CT5
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 191216CT5 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding American Express and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216CT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of American Express i.e., American Express and 191216CT5 go up and down completely randomly.
Pair Corralation between American Express and 191216CT5
Considering the 90-day investment horizon American Express is expected to generate 1.36 times more return on investment than 191216CT5. However, American Express is 1.36 times more volatile than COCA COLA CO. It trades about 0.17 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.02 per unit of risk. If you would invest 16,370 in American Express on August 24, 2024 and sell it today you would earn a total of 13,455 from holding American Express or generate 82.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
American Express vs. COCA COLA CO
Performance |
| Timeline |
| American Express |
| COCA A CO |
American Express and 191216CT5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 191216CT5
The main advantage of trading using opposite American Express and 191216CT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 191216CT5 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 191216CT5 will offset losses from the drop in 191216CT5's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. SoFi Technologies | American Express vs. Coca Cola Consolidated |
| 191216CT5 vs. Alta Equipment Group | 191216CT5 vs. United Rentals | 191216CT5 vs. U Haul Holding | 191216CT5 vs. China Aircraft Leasing |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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