Correlation Between American Express and 197677AH0
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By analyzing existing cross correlation between American Express and HCA 75 percent, you can compare the effects of market volatilities on American Express and 197677AH0 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 197677AH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 197677AH0.
Diversification Opportunities for American Express and 197677AH0
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 197677AH0 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Express and HCA 75 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA 75 percent 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 197677AH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA 75 percent has no effect on the direction of American Express i.e., American Express and 197677AH0 go up and down completely randomly.
Pair Corralation between American Express and 197677AH0
Considering the 90-day investment horizon American Express is expected to generate 0.8 times more return on investment than 197677AH0. However, American Express is 1.24 times less risky than 197677AH0. It trades about 0.13 of its potential returns per unit of risk. HCA 75 percent is currently generating about 0.02 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. HCA 75 percent
Performance |
| Timeline |
| American Express |
| HCA 75 percent |
American Express and 197677AH0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 197677AH0
The main advantage of trading using opposite American Express and 197677AH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 197677AH0 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 197677AH0 will offset losses from the drop in 197677AH0'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 |
| 197677AH0 vs. The Coca Cola | 197677AH0 vs. JPMorgan Chase Co | 197677AH0 vs. Dupont De Nemours | 197677AH0 vs. Alcoa 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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