Correlation Between American Express and 43284MAA6
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By analyzing existing cross correlation between American Express and US43284MAA62, you can compare the effects of market volatilities on American Express and 43284MAA6 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 43284MAA6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 43284MAA6.
Diversification Opportunities for American Express and 43284MAA6
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and 43284MAA6 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding American Express and US43284MAA62 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US43284MAA62 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 43284MAA6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US43284MAA62 has no effect on the direction of American Express i.e., American Express and 43284MAA6 go up and down completely randomly.
Pair Corralation between American Express and 43284MAA6
Considering the 90-day investment horizon American Express is expected to under-perform the 43284MAA6. In addition to that, American Express is 4.71 times more volatile than US43284MAA62. It trades about -0.27 of its total potential returns per unit of risk. US43284MAA62 is currently generating about 0.04 per unit of volatility. If you would invest 9,521 in US43284MAA62 on November 28, 2024 and sell it today you would earn a total of 18.00 from holding US43284MAA62 or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
American Express vs. US43284MAA62
Performance |
| Timeline |
| American Express |
| US43284MAA62 |
American Express and 43284MAA6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 43284MAA6
The main advantage of trading using opposite American Express and 43284MAA6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 43284MAA6 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 43284MAA6 will offset losses from the drop in 43284MAA6's long position.| American Express vs. LM Funding America | American Express vs. Eason Technology Limited | American Express vs. Nisun International Enterprise | American Express vs. Qudian Inc |
| 43284MAA6 vs. Compass Diversified Holdings | 43284MAA6 vs. HNI Corp | 43284MAA6 vs. Highway Holdings Limited | 43284MAA6 vs. Crombie Real Estate |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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