Correlation Between American Express and 23338VAP1
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and DTE 325 01 APR 51, you can compare the effects of market volatilities on American Express and 23338VAP1 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 23338VAP1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 23338VAP1.
Diversification Opportunities for American Express and 23338VAP1
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 23338VAP1 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding American Express and DTE 325 01 APR 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTE 325 01 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 23338VAP1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTE 325 01 has no effect on the direction of American Express i.e., American Express and 23338VAP1 go up and down completely randomly.
Pair Corralation between American Express and 23338VAP1
Considering the 90-day investment horizon American Express is expected to generate 1.22 times more return on investment than 23338VAP1. However, American Express is 1.22 times more volatile than DTE 325 01 APR 51. It trades about 0.13 of its potential returns per unit of risk. DTE 325 01 APR 51 is currently generating about -0.03 per unit of risk. If you would invest 23,593 in American Express on September 2, 2024 and sell it today you would earn a total of 6,875 from holding American Express or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
American Express vs. DTE 325 01 APR 51
Performance |
| Timeline |
| American Express |
| DTE 325 01 |
American Express and 23338VAP1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 23338VAP1
The main advantage of trading using opposite American Express and 23338VAP1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 23338VAP1 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 23338VAP1 will offset losses from the drop in 23338VAP1's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 23338VAP1 vs. National Beverage Corp | 23338VAP1 vs. Fomento Economico Mexicano | 23338VAP1 vs. Constellation Brands Class | 23338VAP1 vs. Vodka Brands 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |