Correlation Between American Express and Kaiser
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By analyzing existing cross correlation between American Express and Kaiser Permanente, you can compare the effects of market volatilities on American Express and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Kaiser.
Diversification Opportunities for American Express and Kaiser
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Kaiser is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of American Express i.e., American Express and Kaiser go up and down completely randomly.
Pair Corralation between American Express and Kaiser
Considering the 90-day investment horizon American Express is expected to generate 1.19 times more return on investment than Kaiser. However, American Express is 1.19 times more volatile than Kaiser Permanente. It trades about 0.28 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.06 per unit of risk. If you would invest 27,269 in American Express on September 2, 2024 and sell it today you would earn a total of 3,199 from holding American Express or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. Kaiser Permanente
Performance |
| Timeline |
| American Express |
| Kaiser Permanente |
American Express and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Kaiser
The main advantage of trading using opposite American Express and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| Kaiser vs. AEP TEX INC | Kaiser vs. US BANK NATIONAL | Kaiser vs. FactSet Research Systems | Kaiser vs. Aurora Innovation |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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