Correlation Between American Express and Fiserv
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By analyzing existing cross correlation between American Express and Fiserv 44 percent, you can compare the effects of market volatilities on American Express and Fiserv 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 Fiserv. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Fiserv.
Diversification Opportunities for American Express and Fiserv
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Fiserv is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Fiserv 44 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiserv 44 percent 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 Fiserv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiserv 44 percent has no effect on the direction of American Express i.e., American Express and Fiserv go up and down completely randomly.
Pair Corralation between American Express and Fiserv
Considering the 90-day investment horizon American Express is expected to generate 2.45 times more return on investment than Fiserv. However, American Express is 2.45 times more volatile than Fiserv 44 percent. It trades about 0.26 of its potential returns per unit of risk. Fiserv 44 percent is currently generating about -0.2 per unit of risk. If you would invest 26,998 in American Express on August 25, 2024 and sell it today you would earn a total of 3,132 from holding American Express or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. Fiserv 44 percent
Performance |
| Timeline |
| American Express |
| Fiserv 44 percent |
American Express and Fiserv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Fiserv
The main advantage of trading using opposite American Express and Fiserv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Fiserv 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 Fiserv will offset losses from the drop in Fiserv's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. SoFi Technologies | American Express vs. Coca Cola Consolidated |
| Fiserv vs. The Coca Cola | Fiserv vs. JPMorgan Chase Co | Fiserv vs. Dupont De Nemours | Fiserv vs. Alcoa 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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