Correlation Between American Express and 337738BE7
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By analyzing existing cross correlation between American Express and FISV 56 02 MAR 33, you can compare the effects of market volatilities on American Express and 337738BE7 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 337738BE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 337738BE7.
Diversification Opportunities for American Express and 337738BE7
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 337738BE7 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding American Express and FISV 56 02 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISV 56 02 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 337738BE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISV 56 02 has no effect on the direction of American Express i.e., American Express and 337738BE7 go up and down completely randomly.
Pair Corralation between American Express and 337738BE7
Considering the 90-day investment horizon American Express is expected to generate 1.43 times more return on investment than 337738BE7. However, American Express is 1.43 times more volatile than FISV 56 02 MAR 33. It trades about 0.29 of its potential returns per unit of risk. FISV 56 02 MAR 33 is currently generating about 0.07 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 3,410 from holding American Express or generate 12.56% 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. FISV 56 02 MAR 33
Performance |
| Timeline |
| American Express |
| FISV 56 02 |
American Express and 337738BE7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 337738BE7
The main advantage of trading using opposite American Express and 337738BE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 337738BE7 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 337738BE7 will offset losses from the drop in 337738BE7's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
| 337738BE7 vs. AEP TEX INC | 337738BE7 vs. US BANK NATIONAL | 337738BE7 vs. 3M Company | 337738BE7 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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