Correlation Between American Express and 37940XAN2
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By analyzing existing cross correlation between American Express and GPN 53 15 AUG 29, you can compare the effects of market volatilities on American Express and 37940XAN2 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 37940XAN2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 37940XAN2.
Diversification Opportunities for American Express and 37940XAN2
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 37940XAN2 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding American Express and GPN 53 15 AUG 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPN 53 15 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 37940XAN2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPN 53 15 has no effect on the direction of American Express i.e., American Express and 37940XAN2 go up and down completely randomly.
Pair Corralation between American Express and 37940XAN2
Considering the 90-day investment horizon American Express is expected to generate 4.61 times more return on investment than 37940XAN2. However, American Express is 4.61 times more volatile than GPN 53 15 AUG 29. It trades about 0.28 of its potential returns per unit of risk. GPN 53 15 AUG 29 is currently generating about -0.15 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. GPN 53 15 AUG 29
Performance |
| Timeline |
| American Express |
| GPN 53 15 |
American Express and 37940XAN2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 37940XAN2
The main advantage of trading using opposite American Express and 37940XAN2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 37940XAN2 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 37940XAN2 will offset losses from the drop in 37940XAN2's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 37940XAN2 vs. AEP TEX INC | 37940XAN2 vs. US BANK NATIONAL | 37940XAN2 vs. PayPal Holdings | 37940XAN2 vs. IONQ 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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