Correlation Between American Express and DISNEY
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By analyzing existing cross correlation between American Express and DISNEY WALT NEW, you can compare the effects of market volatilities on American Express and DISNEY 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 DISNEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and DISNEY.
Diversification Opportunities for American Express and DISNEY
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and DISNEY is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Express and DISNEY WALT NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISNEY WALT NEW 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 DISNEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISNEY WALT NEW has no effect on the direction of American Express i.e., American Express and DISNEY go up and down completely randomly.
Pair Corralation between American Express and DISNEY
Considering the 90-day investment horizon American Express is expected to generate 1.14 times more return on investment than DISNEY. However, American Express is 1.14 times more volatile than DISNEY WALT NEW. It trades about 0.26 of its potential returns per unit of risk. DISNEY WALT NEW is currently generating about 0.01 per unit of risk. If you would invest 27,147 in American Express on August 27, 2024 and sell it today you would earn a total of 2,983 from holding American Express or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
American Express vs. DISNEY WALT NEW
Performance |
| Timeline |
| American Express |
| DISNEY WALT NEW |
American Express and DISNEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and DISNEY
The main advantage of trading using opposite American Express and DISNEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, DISNEY 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 DISNEY will offset losses from the drop in DISNEY's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| DISNEY vs. Bridgford Foods | DISNEY vs. SNDL Inc | DISNEY vs. FitLife Brands, Common | DISNEY vs. SEI Investments |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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