Correlation Between American Express and CROWN
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By analyzing existing cross correlation between American Express and CROWN CASTLE INTERNATIONAL, you can compare the effects of market volatilities on American Express and CROWN 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 CROWN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and CROWN.
Diversification Opportunities for American Express and CROWN
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and CROWN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and CROWN CASTLE INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CROWN CASTLE INTERNA 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 CROWN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CROWN CASTLE INTERNA has no effect on the direction of American Express i.e., American Express and CROWN go up and down completely randomly.
Pair Corralation between American Express and CROWN
Considering the 90-day investment horizon American Express is expected to generate 1.71 times more return on investment than CROWN. However, American Express is 1.71 times more volatile than CROWN CASTLE INTERNATIONAL. It trades about 0.28 of its potential returns per unit of risk. CROWN CASTLE INTERNATIONAL is currently generating about -0.08 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
American Express vs. CROWN CASTLE INTERNATIONAL
Performance |
| Timeline |
| American Express |
| CROWN CASTLE INTERNA |
American Express and CROWN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and CROWN
The main advantage of trading using opposite American Express and CROWN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, CROWN 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 CROWN will offset losses from the drop in CROWN's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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