Correlation Between American Express and MYLAN
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By analyzing existing cross correlation between American Express and MYLAN INC 54, you can compare the effects of market volatilities on American Express and MYLAN 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 MYLAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and MYLAN.
Diversification Opportunities for American Express and MYLAN
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and MYLAN is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding American Express and MYLAN INC 54 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYLAN INC 54 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 MYLAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYLAN INC 54 has no effect on the direction of American Express i.e., American Express and MYLAN go up and down completely randomly.
Pair Corralation between American Express and MYLAN
Considering the 90-day investment horizon American Express is expected to generate 0.7 times more return on investment than MYLAN. However, American Express is 1.42 times less risky than MYLAN. It trades about 0.28 of its potential returns per unit of risk. MYLAN INC 54 is currently generating about -0.04 per unit of risk. If you would invest 27,147 in American Express on August 28, 2024 and sell it today you would earn a total of 3,374 from holding American Express or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
American Express vs. MYLAN INC 54
Performance |
| Timeline |
| American Express |
| MYLAN INC 54 |
American Express and MYLAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and MYLAN
The main advantage of trading using opposite American Express and MYLAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, MYLAN 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 MYLAN will offset losses from the drop in MYLAN's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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