Correlation Between American Express and Service
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By analyzing existing cross correlation between American Express and Service Properties Trust, you can compare the effects of market volatilities on American Express and Service 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 Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Service.
Diversification Opportunities for American Express and Service
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Service is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Service Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Properties Trust 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 Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Properties Trust has no effect on the direction of American Express i.e., American Express and Service go up and down completely randomly.
Pair Corralation between American Express and Service
Considering the 90-day investment horizon American Express is expected to generate 4.09 times more return on investment than Service. However, American Express is 4.09 times more volatile than Service Properties Trust. It trades about 0.24 of its potential returns per unit of risk. Service Properties Trust is currently generating about 0.22 per unit of risk. If you would invest 29,810 in American Express on October 23, 2024 and sell it today you would earn a total of 1,985 from holding American Express or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
American Express vs. Service Properties Trust
Performance |
| Timeline |
| American Express |
| Service Properties Trust |
American Express and Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Service
The main advantage of trading using opposite American Express and Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Service 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 Service will offset losses from the drop in Service's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. MSCI ACWI exAUCONSUMER | American Express vs. Sycamore Entmt Grp |
| Service vs. AEP TEX INC | Service vs. US BANK NATIONAL | Service vs. Osprey Solana Trust | Service vs. ANSYS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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