Correlation Between American Express and FEDEX
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By analyzing existing cross correlation between American Express and FEDEX P 44, you can compare the effects of market volatilities on American Express and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and FEDEX.
Diversification Opportunities for American Express and FEDEX
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and FEDEX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and FEDEX P 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 44 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P 44 has no effect on the direction of American Express i.e., American Express and FEDEX go up and down completely randomly.
Pair Corralation between American Express and FEDEX
Considering the 90-day investment horizon American Express is expected to generate 0.32 times more return on investment than FEDEX. However, American Express is 3.15 times less risky than FEDEX. It trades about 0.29 of its potential returns per unit of risk. FEDEX P 44 is currently generating about 0.03 per unit of risk. If you would invest 26,735 in American Express on August 26, 2024 and sell it today you would earn a total of 3,395 from holding American Express or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. FEDEX P 44
Performance |
| Timeline |
| American Express |
| FEDEX P 44 |
American Express and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and FEDEX
The main advantage of trading using opposite American Express and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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