Correlation Between American Express and DEUTSCHE
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By analyzing existing cross correlation between American Express and DEUTSCHE BANK AG, you can compare the effects of market volatilities on American Express and DEUTSCHE 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 DEUTSCHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and DEUTSCHE.
Diversification Opportunities for American Express and DEUTSCHE
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and DEUTSCHE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding American Express and DEUTSCHE BANK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BANK AG 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 DEUTSCHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE BANK AG has no effect on the direction of American Express i.e., American Express and DEUTSCHE go up and down completely randomly.
Pair Corralation between American Express and DEUTSCHE
Considering the 90-day investment horizon American Express is expected to generate 1.84 times more return on investment than DEUTSCHE. However, American Express is 1.84 times more volatile than DEUTSCHE BANK AG. It trades about 0.25 of its potential returns per unit of risk. DEUTSCHE BANK AG is currently generating about -0.19 per unit of risk. If you would invest 30,034 in American Express on October 28, 2024 and sell it today you would earn a total of 2,100 from holding American Express or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
American Express vs. DEUTSCHE BANK AG
Performance |
| Timeline |
| American Express |
| DEUTSCHE BANK AG |
American Express and DEUTSCHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and DEUTSCHE
The main advantage of trading using opposite American Express and DEUTSCHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, DEUTSCHE 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 DEUTSCHE will offset losses from the drop in DEUTSCHE's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Mastercard |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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