Correlation Between American Express and KROGER
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By analyzing existing cross correlation between American Express and KROGER 35 percent, you can compare the effects of market volatilities on American Express and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and KROGER.
Diversification Opportunities for American Express and KROGER
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and KROGER is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Express and KROGER 35 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 35 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 35 percent has no effect on the direction of American Express i.e., American Express and KROGER go up and down completely randomly.
Pair Corralation between American Express and KROGER
Considering the 90-day investment horizon American Express is expected to generate 4.17 times more return on investment than KROGER. However, American Express is 4.17 times more volatile than KROGER 35 percent. It trades about 0.12 of its potential returns per unit of risk. KROGER 35 percent is currently generating about 0.02 per unit of risk. If you would invest 16,785 in American Express on August 31, 2024 and sell it today you would earn a total of 13,683 from holding American Express or generate 81.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. KROGER 35 percent
Performance |
| Timeline |
| American Express |
| KROGER 35 percent |
American Express and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and KROGER
The main advantage of trading using opposite American Express and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Dream Finders Homes | KROGER vs. Parker Hannifin | KROGER vs. Simpson Manufacturing | KROGER vs. ServiceNow |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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