Correlation Between American Express and 29364WBH0
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By analyzing existing cross correlation between American Express and ETR 235 15 JUN 32, you can compare the effects of market volatilities on American Express and 29364WBH0 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 29364WBH0. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 29364WBH0.
Diversification Opportunities for American Express and 29364WBH0
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 29364WBH0 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ETR 235 15 JUN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETR 235 15 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 29364WBH0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETR 235 15 has no effect on the direction of American Express i.e., American Express and 29364WBH0 go up and down completely randomly.
Pair Corralation between American Express and 29364WBH0
Considering the 90-day investment horizon American Express is expected to generate 2.17 times more return on investment than 29364WBH0. However, American Express is 2.17 times more volatile than ETR 235 15 JUN 32. It trades about 0.12 of its potential returns per unit of risk. ETR 235 15 JUN 32 is currently generating about 0.0 per unit of risk. If you would invest 16,785 in American Express on August 31, 2024 and sell it today you would earn a total of 13,683 from holding American Express or generate 81.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 89.04% |
| Values | Daily Returns |
American Express vs. ETR 235 15 JUN 32
Performance |
| Timeline |
| American Express |
| ETR 235 15 |
American Express and 29364WBH0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 29364WBH0
The main advantage of trading using opposite American Express and 29364WBH0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 29364WBH0 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 29364WBH0 will offset losses from the drop in 29364WBH0's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| 29364WBH0 vs. Precision Drilling | 29364WBH0 vs. Luxfer Holdings PLC | 29364WBH0 vs. Sealed Air | 29364WBH0 vs. Sable Offshore 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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