Correlation Between American Express and MORGAN
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By analyzing existing cross correlation between American Express and MORGAN STANLEY 395, you can compare the effects of market volatilities on American Express and MORGAN 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 MORGAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and MORGAN.
Diversification Opportunities for American Express and MORGAN
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and MORGAN is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding American Express and MORGAN STANLEY 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MORGAN STANLEY 5 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 MORGAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MORGAN STANLEY 5 has no effect on the direction of American Express i.e., American Express and MORGAN go up and down completely randomly.
Pair Corralation between American Express and MORGAN
Considering the 90-day investment horizon American Express is expected to generate 2.98 times more return on investment than MORGAN. However, American Express is 2.98 times more volatile than MORGAN STANLEY 395. It trades about 0.14 of its potential returns per unit of risk. MORGAN STANLEY 395 is currently generating about 0.01 per unit of risk. If you would invest 15,833 in American Express on September 12, 2024 and sell it today you would earn a total of 14,413 from holding American Express or generate 91.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.09% |
| Values | Daily Returns |
American Express vs. MORGAN STANLEY 395
Performance |
| Timeline |
| American Express |
| MORGAN STANLEY 5 |
American Express and MORGAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and MORGAN
The main advantage of trading using opposite American Express and MORGAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, MORGAN 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 MORGAN will offset losses from the drop in MORGAN's long position.| American Express vs. Victory Integrity Smallmid Cap | American Express vs. Hilton Worldwide Holdings | American Express vs. NVIDIA | American Express vs. JPMorgan Chase Co |
| MORGAN vs. Ambev SA ADR | MORGAN vs. CECO Environmental Corp | MORGAN vs. Jacobs Solutions | MORGAN vs. Sandstorm Gold Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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