Correlation Between American Express and ENTERPRISE
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By analyzing existing cross correlation between American Express and ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on American Express and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ENTERPRISE.
Diversification Opportunities for American Express and ENTERPRISE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and ENTERPRISE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of American Express i.e., American Express and ENTERPRISE go up and down completely randomly.
Pair Corralation between American Express and ENTERPRISE
Considering the 90-day investment horizon American Express is expected to generate 2.52 times more return on investment than ENTERPRISE. However, American Express is 2.52 times more volatile than ENTERPRISE PRODS OPER. It trades about 0.27 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about 0.1 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 3,278 from holding American Express or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
American Express vs. ENTERPRISE PRODS OPER
Performance |
| Timeline |
| American Express |
| ENTERPRISE PRODS OPER |
American Express and ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ENTERPRISE
The main advantage of trading using opposite American Express and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
| ENTERPRISE vs. AEP TEX INC | ENTERPRISE vs. US BANK NATIONAL | ENTERPRISE vs. Nasdaq Inc | ENTERPRISE vs. Vertiv Holdings Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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