Correlation Between American Express and ECOPET
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By analyzing existing cross correlation between American Express and ECOPET 5875 02 NOV 51, you can compare the effects of market volatilities on American Express and ECOPET 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 ECOPET. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ECOPET.
Diversification Opportunities for American Express and ECOPET
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and ECOPET is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ECOPET 5875 02 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECOPET 5875 02 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 ECOPET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECOPET 5875 02 has no effect on the direction of American Express i.e., American Express and ECOPET go up and down completely randomly.
Pair Corralation between American Express and ECOPET
Considering the 90-day investment horizon American Express is expected to generate 1.02 times more return on investment than ECOPET. However, American Express is 1.02 times more volatile than ECOPET 5875 02 NOV 51. It trades about 0.27 of its potential returns per unit of risk. ECOPET 5875 02 NOV 51 is currently generating about -0.21 per unit of risk. If you would invest 27,147 in American Express on August 29, 2024 and sell it today you would earn a total of 3,294 from holding American Express or generate 12.13% 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. ECOPET 5875 02 NOV 51
Performance |
| Timeline |
| American Express |
| ECOPET 5875 02 |
American Express and ECOPET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ECOPET
The main advantage of trading using opposite American Express and ECOPET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ECOPET 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 ECOPET will offset losses from the drop in ECOPET's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
| ECOPET vs. Acco Brands | ECOPET vs. Weyco Group | ECOPET vs. NL Industries | ECOPET vs. Franklin Wireless 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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