Correlation Between American Express and KIMBERLY
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By analyzing existing cross correlation between American Express and KIMBERLY CLARK P, you can compare the effects of market volatilities on American Express and KIMBERLY 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 KIMBERLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and KIMBERLY.
Diversification Opportunities for American Express and KIMBERLY
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and KIMBERLY is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding American Express and KIMBERLY CLARK P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBERLY CLARK P 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 KIMBERLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBERLY CLARK P has no effect on the direction of American Express i.e., American Express and KIMBERLY go up and down completely randomly.
Pair Corralation between American Express and KIMBERLY
Considering the 90-day investment horizon American Express is expected to generate 1.64 times more return on investment than KIMBERLY. However, American Express is 1.64 times more volatile than KIMBERLY CLARK P. It trades about 0.1 of its potential returns per unit of risk. KIMBERLY CLARK P is currently generating about 0.01 per unit of risk. If you would invest 14,696 in American Express on August 31, 2024 and sell it today you would earn a total of 15,772 from holding American Express or generate 107.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.43% |
| Values | Daily Returns |
American Express vs. KIMBERLY CLARK P
Performance |
| Timeline |
| American Express |
| KIMBERLY CLARK P |
American Express and KIMBERLY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and KIMBERLY
The main advantage of trading using opposite American Express and KIMBERLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, KIMBERLY 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 KIMBERLY will offset losses from the drop in KIMBERLY's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| KIMBERLY vs. Sweetgreen | KIMBERLY vs. Meli Hotels International | KIMBERLY vs. Park Hotels Resorts | KIMBERLY vs. Biglari Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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