Correlation Between American Express and 4042Q1AD9
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By analyzing existing cross correlation between American Express and HSBC 7 15 JAN 39, you can compare the effects of market volatilities on American Express and 4042Q1AD9 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 4042Q1AD9. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 4042Q1AD9.
Diversification Opportunities for American Express and 4042Q1AD9
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 4042Q1AD9 is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Express and HSBC 7 15 JAN 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC 7 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 4042Q1AD9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC 7 15 has no effect on the direction of American Express i.e., American Express and 4042Q1AD9 go up and down completely randomly.
Pair Corralation between American Express and 4042Q1AD9
Considering the 90-day investment horizon American Express is expected to generate 2.9 times more return on investment than 4042Q1AD9. However, American Express is 2.9 times more volatile than HSBC 7 15 JAN 39. It trades about 0.29 of its potential returns per unit of risk. HSBC 7 15 JAN 39 is currently generating about 0.0 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
American Express vs. HSBC 7 15 JAN 39
Performance |
| Timeline |
| American Express |
| HSBC 7 15 |
American Express and 4042Q1AD9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 4042Q1AD9
The main advantage of trading using opposite American Express and 4042Q1AD9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 4042Q1AD9 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 4042Q1AD9 will offset losses from the drop in 4042Q1AD9's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 4042Q1AD9 vs. AEP TEX INC | 4042Q1AD9 vs. US BANK NATIONAL | 4042Q1AD9 vs. 3M Company | 4042Q1AD9 vs. Alcoa Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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