Correlation Between American Express and Keurig
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By analyzing existing cross correlation between American Express and Keurig Dr Pepper, you can compare the effects of market volatilities on American Express and Keurig 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 Keurig. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Keurig.
Diversification Opportunities for American Express and Keurig
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Keurig is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper 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 Keurig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of American Express i.e., American Express and Keurig go up and down completely randomly.
Pair Corralation between American Express and Keurig
Considering the 90-day investment horizon American Express is expected to generate 4.65 times more return on investment than Keurig. However, American Express is 4.65 times more volatile than Keurig Dr Pepper. It trades about 0.18 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.08 per unit of risk. If you would invest 25,365 in American Express on September 2, 2024 and sell it today you would earn a total of 5,103 from holding American Express or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
American Express vs. Keurig Dr Pepper
Performance |
| Timeline |
| American Express |
| Keurig Dr Pepper |
American Express and Keurig Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Keurig
The main advantage of trading using opposite American Express and Keurig positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Keurig 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 Keurig will offset losses from the drop in Keurig's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| Keurig vs. AEP TEX INC | Keurig vs. US BANK NATIONAL | Keurig vs. FactSet Research Systems | Keurig 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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