Correlation Between American Express and Mattel
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By analyzing existing cross correlation between American Express and Mattel 62 percent, you can compare the effects of market volatilities on American Express and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Mattel.
Diversification Opportunities for American Express and Mattel
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Mattel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Mattel 62 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel 62 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel 62 percent has no effect on the direction of American Express i.e., American Express and Mattel go up and down completely randomly.
Pair Corralation between American Express and Mattel
Considering the 90-day investment horizon American Express is expected to generate 0.98 times more return on investment than Mattel. However, American Express is 1.02 times less risky than Mattel. It trades about 0.12 of its potential returns per unit of risk. Mattel 62 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 | Weak |
| Accuracy | 97.33% |
| Values | Daily Returns |
American Express vs. Mattel 62 percent
Performance |
| Timeline |
| American Express |
| Mattel 62 percent |
American Express and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Mattel
The main advantage of trading using opposite American Express and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel'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 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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