Correlation Between American Express and GENERAL
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By analyzing existing cross correlation between American Express and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on American Express and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and GENERAL.
Diversification Opportunities for American Express and GENERAL
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and GENERAL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding American Express and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of American Express i.e., American Express and GENERAL go up and down completely randomly.
Pair Corralation between American Express and GENERAL
Considering the 90-day investment horizon American Express is expected to generate 14.86 times less return on investment than GENERAL. But when comparing it to its historical volatility, American Express is 31.79 times less risky than GENERAL. It trades about 0.09 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,429 in GENERAL DYNAMICS PORATION on August 25, 2024 and sell it today you would lose (958.00) from holding GENERAL DYNAMICS PORATION or give up 10.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.48% |
| Values | Daily Returns |
American Express vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| American Express |
| GENERAL DYNAMICS PORATION |
American Express and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and GENERAL
The main advantage of trading using opposite American Express and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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