Correlation Between American Express and COSTCO
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By analyzing existing cross correlation between American Express and COSTCO WHOLESALE PORATION, you can compare the effects of market volatilities on American Express and COSTCO 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 COSTCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and COSTCO.
Diversification Opportunities for American Express and COSTCO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and COSTCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and COSTCO WHOLESALE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTCO WHOLESALE PORATION 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 COSTCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTCO WHOLESALE PORATION has no effect on the direction of American Express i.e., American Express and COSTCO go up and down completely randomly.
Pair Corralation between American Express and COSTCO
If you would invest 25,798 in American Express on August 30, 2024 and sell it today you would earn a total of 4,627 from holding American Express or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
American Express vs. COSTCO WHOLESALE PORATION
Performance |
| Timeline |
| American Express |
| COSTCO WHOLESALE PORATION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and COSTCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and COSTCO
The main advantage of trading using opposite American Express and COSTCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, COSTCO 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 COSTCO will offset losses from the drop in COSTCO's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| COSTCO vs. CECO Environmental Corp | COSTCO vs. Highway Holdings Limited | COSTCO vs. Everus Construction Group | COSTCO vs. Weyco Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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