Correlation Between American Express and Navient
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By analyzing existing cross correlation between American Express and Navient 5875 percent, you can compare the effects of market volatilities on American Express and Navient 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 Navient. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Navient.
Diversification Opportunities for American Express and Navient
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Navient is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Navient 5875 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient 5875 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 Navient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient 5875 percent has no effect on the direction of American Express i.e., American Express and Navient go up and down completely randomly.
Pair Corralation between American Express and Navient
Considering the 90-day investment horizon American Express is expected to generate 1.93 times more return on investment than Navient. However, American Express is 1.93 times more volatile than Navient 5875 percent. It trades about 0.18 of its potential returns per unit of risk. Navient 5875 percent is currently generating about -0.06 per unit of risk. If you would invest 26,745 in American Express on August 27, 2024 and sell it today you would earn a total of 3,776 from holding American Express or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.81% |
| Values | Daily Returns |
American Express vs. Navient 5875 percent
Performance |
| Timeline |
| American Express |
| Navient 5875 percent |
American Express and Navient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Navient
The main advantage of trading using opposite American Express and Navient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Navient 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 Navient will offset losses from the drop in Navient's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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