Correlation Between American Express and GENERAL
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By analyzing existing cross correlation between American Express and GENERAL MTRS 515, 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
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and GENERAL is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Express and GENERAL MTRS 515 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS 515 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 MTRS 515 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 under-perform the GENERAL. In addition to that, American Express is 1.55 times more volatile than GENERAL MTRS 515. It trades about -0.02 of its total potential returns per unit of risk. GENERAL MTRS 515 is currently generating about 0.25 per unit of volatility. If you would invest 9,054 in GENERAL MTRS 515 on November 18, 2024 and sell it today you would earn a total of 331.00 from holding GENERAL MTRS 515 or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. GENERAL MTRS 515
Performance |
| Timeline |
| American Express |
| GENERAL MTRS 515 |
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. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| GENERAL vs. AEP TEX INC | GENERAL vs. Bank of America | GENERAL vs. Dupont De Nemours | GENERAL vs. Pfizer Inc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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