Correlation Between American Express and ENBCN
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and ENBCN 16 04 OCT 26, you can compare the effects of market volatilities on American Express and ENBCN 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 ENBCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ENBCN.
Diversification Opportunities for American Express and ENBCN
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and ENBCN is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ENBCN 16 04 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENBCN 16 04 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 ENBCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENBCN 16 04 has no effect on the direction of American Express i.e., American Express and ENBCN go up and down completely randomly.
Pair Corralation between American Express and ENBCN
Considering the 90-day investment horizon American Express is expected to generate 4.07 times more return on investment than ENBCN. However, American Express is 4.07 times more volatile than ENBCN 16 04 OCT 26. It trades about 0.1 of its potential returns per unit of risk. ENBCN 16 04 OCT 26 is currently generating about 0.01 per unit of risk. If you would invest 15,318 in American Express on September 2, 2024 and sell it today you would earn a total of 15,150 from holding American Express or generate 98.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.53% |
| Values | Daily Returns |
American Express vs. ENBCN 16 04 OCT 26
Performance |
| Timeline |
| American Express |
| ENBCN 16 04 |
American Express and ENBCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ENBCN
The main advantage of trading using opposite American Express and ENBCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ENBCN 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 ENBCN will offset losses from the drop in ENBCN's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |