Correlation Between American Express and GENERAL
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By analyzing existing cross correlation between American Express and GENERAL MTRS FINL, 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
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and GENERAL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Express and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 FINL 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 3.37 times more return on investment than GENERAL. However, American Express is 3.37 times more volatile than GENERAL MTRS FINL. It trades about 0.28 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about 0.05 per unit of risk. If you would invest 27,269 in American Express on September 2, 2024 and sell it today you would earn a total of 3,199 from holding American Express or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. GENERAL MTRS FINL
Performance |
| Timeline |
| American Express |
| GENERAL MTRS FINL |
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. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| GENERAL vs. Evertz Technologies Limited | GENERAL vs. Analog Devices | GENERAL vs. Maiden Holdings | GENERAL vs. Minerals Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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