Correlation Between American Express and MQGAU
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By analyzing existing cross correlation between American Express and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on American Express and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and MQGAU.
Diversification Opportunities for American Express and MQGAU
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and MQGAU is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding American Express and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of American Express i.e., American Express and MQGAU go up and down completely randomly.
Pair Corralation between American Express and MQGAU
Considering the 90-day investment horizon American Express is expected to generate 16.36 times more return on investment than MQGAU. However, American Express is 16.36 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.18 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about 0.13 per unit of risk. If you would invest 25,449 in American Express on September 12, 2024 and sell it today you would earn a total of 4,797 from holding American Express or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.69% |
| Values | Daily Returns |
American Express vs. MQGAU 5376057 23 SEP 27
Performance |
| Timeline |
| American Express |
| MQGAU 5376057 23 |
American Express and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and MQGAU
The main advantage of trading using opposite American Express and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Upstart Holdings | American Express vs. Mastercard |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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