Correlation Between American Express and Global
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By analyzing existing cross correlation between American Express and Global Marine 7, you can compare the effects of market volatilities on American Express and Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Global.
Diversification Opportunities for American Express and Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Global is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Global Marine 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Marine 7 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Marine 7 has no effect on the direction of American Express i.e., American Express and Global go up and down completely randomly.
Pair Corralation between American Express and Global
Considering the 90-day investment horizon American Express is expected to generate 1.45 times more return on investment than Global. However, American Express is 1.45 times more volatile than Global Marine 7. It trades about 0.28 of its potential returns per unit of risk. Global Marine 7 is currently generating about -0.18 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 | 85.71% |
| Values | Daily Returns |
American Express vs. Global Marine 7
Performance |
| Timeline |
| American Express |
| Global Marine 7 |
American Express and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Global
The main advantage of trading using opposite American Express and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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