Correlation Between American Express and 20826FAC0
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By analyzing existing cross correlation between American Express and CONOCOPHILLIPS 43 percent, you can compare the effects of market volatilities on American Express and 20826FAC0 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 20826FAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 20826FAC0.
Diversification Opportunities for American Express and 20826FAC0
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 20826FAC0 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CONOCOPHILLIPS 43 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONOCOPHILLIPS 43 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 20826FAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONOCOPHILLIPS 43 percent has no effect on the direction of American Express i.e., American Express and 20826FAC0 go up and down completely randomly.
Pair Corralation between American Express and 20826FAC0
Considering the 90-day investment horizon American Express is expected to generate 1.72 times more return on investment than 20826FAC0. However, American Express is 1.72 times more volatile than CONOCOPHILLIPS 43 percent. It trades about 0.29 of its potential returns per unit of risk. CONOCOPHILLIPS 43 percent is currently generating about 0.01 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
American Express vs. CONOCOPHILLIPS 43 percent
Performance |
| Timeline |
| American Express |
| CONOCOPHILLIPS 43 percent |
American Express and 20826FAC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 20826FAC0
The main advantage of trading using opposite American Express and 20826FAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 20826FAC0 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 20826FAC0 will offset losses from the drop in 20826FAC0's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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