Correlation Between American Express and LOWES
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By analyzing existing cross correlation between American Express and LOWES PANIES INC, you can compare the effects of market volatilities on American Express and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and LOWES.
Diversification Opportunities for American Express and LOWES
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and LOWES is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Express and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of American Express i.e., American Express and LOWES go up and down completely randomly.
Pair Corralation between American Express and LOWES
Considering the 90-day investment horizon American Express is expected to generate 0.47 times more return on investment than LOWES. However, American Express is 2.12 times less risky than LOWES. It trades about 0.19 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.03 per unit of risk. If you would invest 28,851 in American Express on September 13, 2024 and sell it today you would earn a total of 1,286 from holding American Express or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. LOWES PANIES INC
Performance |
| Timeline |
| American Express |
| LOWES PANIES INC |
American Express and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and LOWES
The main advantage of trading using opposite American Express and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Upstart Holdings | American Express vs. Mastercard |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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