Correlation Between American Express and KEMPER
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By analyzing existing cross correlation between American Express and KEMPER P DEL, you can compare the effects of market volatilities on American Express and KEMPER 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 KEMPER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and KEMPER.
Diversification Opportunities for American Express and KEMPER
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and KEMPER is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding American Express and KEMPER P DEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEMPER P DEL 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 KEMPER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEMPER P DEL has no effect on the direction of American Express i.e., American Express and KEMPER go up and down completely randomly.
Pair Corralation between American Express and KEMPER
Considering the 90-day investment horizon American Express is expected to generate 3.3 times more return on investment than KEMPER. However, American Express is 3.3 times more volatile than KEMPER P DEL. It trades about 0.09 of its potential returns per unit of risk. KEMPER P DEL is currently generating about -0.01 per unit of risk. If you would invest 15,339 in American Express on September 3, 2024 and sell it today you would earn a total of 14,887 from holding American Express or generate 97.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.14% |
| Values | Daily Returns |
American Express vs. KEMPER P DEL
Performance |
| Timeline |
| American Express |
| KEMPER P DEL |
American Express and KEMPER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and KEMPER
The main advantage of trading using opposite American Express and KEMPER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, KEMPER 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 KEMPER will offset losses from the drop in KEMPER's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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