Correlation Between American Express and 489399AN5
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By analyzing existing cross correlation between American Express and US489399AN56, you can compare the effects of market volatilities on American Express and 489399AN5 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 489399AN5. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 489399AN5.
Diversification Opportunities for American Express and 489399AN5
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 489399AN5 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding American Express and US489399AN56 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US489399AN56 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 489399AN5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US489399AN56 has no effect on the direction of American Express i.e., American Express and 489399AN5 go up and down completely randomly.
Pair Corralation between American Express and 489399AN5
Considering the 90-day investment horizon American Express is expected to generate 0.93 times more return on investment than 489399AN5. However, American Express is 1.08 times less risky than 489399AN5. It trades about 0.13 of its potential returns per unit of risk. US489399AN56 is currently generating about -0.03 per unit of risk. If you would invest 23,593 in American Express on September 2, 2024 and sell it today you would earn a total of 6,875 from holding American Express or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.27% |
| Values | Daily Returns |
American Express vs. US489399AN56
Performance |
| Timeline |
| American Express |
| US489399AN56 |
American Express and 489399AN5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 489399AN5
The main advantage of trading using opposite American Express and 489399AN5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 489399AN5 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 489399AN5 will offset losses from the drop in 489399AN5's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 489399AN5 vs. Flexible Solutions International | 489399AN5 vs. Eldorado Gold Corp | 489399AN5 vs. BioNTech SE | 489399AN5 vs. Parker Hannifin |
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 CEOs Directory module to screen CEOs from public companies around the world.
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