Correlation Between American Express and 459200KY6
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and IBM 475 06 FEB 33, you can compare the effects of market volatilities on American Express and 459200KY6 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 459200KY6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 459200KY6.
Diversification Opportunities for American Express and 459200KY6
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 459200KY6 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding American Express and IBM 475 06 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBM 475 06 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 459200KY6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBM 475 06 has no effect on the direction of American Express i.e., American Express and 459200KY6 go up and down completely randomly.
Pair Corralation between American Express and 459200KY6
Considering the 90-day investment horizon American Express is expected to generate 4.21 times more return on investment than 459200KY6. However, American Express is 4.21 times more volatile than IBM 475 06 FEB 33. It trades about 0.26 of its potential returns per unit of risk. IBM 475 06 FEB 33 is currently generating about -0.26 per unit of risk. If you would invest 26,998 in American Express on August 25, 2024 and sell it today you would earn a total of 3,132 from holding American Express or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.91% |
| Values | Daily Returns |
American Express vs. IBM 475 06 FEB 33
Performance |
| Timeline |
| American Express |
| IBM 475 06 |
American Express and 459200KY6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 459200KY6
The main advantage of trading using opposite American Express and 459200KY6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 459200KY6 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 459200KY6 will offset losses from the drop in 459200KY6's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| 459200KY6 vs. Albertsons Companies | 459200KY6 vs. Kite Realty Group | 459200KY6 vs. Contagious Gaming | 459200KY6 vs. Electronic Arts |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |