Correlation Between American Express and COMCAST
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By analyzing existing cross correlation between American Express and COMCAST P NEW, you can compare the effects of market volatilities on American Express and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and COMCAST.
Diversification Opportunities for American Express and COMCAST
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and COMCAST is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding American Express and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of American Express i.e., American Express and COMCAST go up and down completely randomly.
Pair Corralation between American Express and COMCAST
Considering the 90-day investment horizon American Express is expected to under-perform the COMCAST. In addition to that, American Express is 1.47 times more volatile than COMCAST P NEW. It trades about -0.02 of its total potential returns per unit of risk. COMCAST P NEW is currently generating about 0.23 per unit of volatility. If you would invest 8,375 in COMCAST P NEW on November 18, 2024 and sell it today you would earn a total of 297.00 from holding COMCAST P NEW or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. COMCAST P NEW
Performance |
| Timeline |
| American Express |
| COMCAST P NEW |
American Express and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and COMCAST
The main advantage of trading using opposite American Express and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| COMCAST vs. BTU Metals Corp | COMCAST vs. Catalyst Metals Limited | COMCAST vs. Vulcan Materials | COMCAST vs. Sun Peak Metals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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