Correlation Between American Express and 281020AT4
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By analyzing existing cross correlation between American Express and EIX 5, you can compare the effects of market volatilities on American Express and 281020AT4 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 281020AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 281020AT4.
Diversification Opportunities for American Express and 281020AT4
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 281020AT4 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding American Express and EIX 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 281020AT4 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 281020AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 281020AT4 has no effect on the direction of American Express i.e., American Express and 281020AT4 go up and down completely randomly.
Pair Corralation between American Express and 281020AT4
Considering the 90-day investment horizon American Express is expected to generate 0.7 times more return on investment than 281020AT4. However, American Express is 1.43 times less risky than 281020AT4. It trades about 0.18 of its potential returns per unit of risk. EIX 5 is currently generating about -0.12 per unit of risk. If you would invest 25,365 in American Express on September 2, 2024 and sell it today you would earn a total of 5,103 from holding American Express or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
American Express vs. EIX 5
Performance |
| Timeline |
| American Express |
| 281020AT4 |
American Express and 281020AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 281020AT4
The main advantage of trading using opposite American Express and 281020AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 281020AT4 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 281020AT4 will offset losses from the drop in 281020AT4's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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