Correlation Between American Express and NETAPP
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By analyzing existing cross correlation between American Express and NETAPP INC, you can compare the effects of market volatilities on American Express and NETAPP 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 NETAPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and NETAPP.
Diversification Opportunities for American Express and NETAPP
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and NETAPP is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding American Express and NETAPP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETAPP INC 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 NETAPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETAPP INC has no effect on the direction of American Express i.e., American Express and NETAPP go up and down completely randomly.
Pair Corralation between American Express and NETAPP
Considering the 90-day investment horizon American Express is expected to generate 2.59 times more return on investment than NETAPP. However, American Express is 2.59 times more volatile than NETAPP INC. It trades about 0.13 of its potential returns per unit of risk. NETAPP INC is currently generating about -0.06 per unit of risk. If you would invest 23,556 in American Express on August 30, 2024 and sell it today you would earn a total of 6,869 from holding American Express or generate 29.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
American Express vs. NETAPP INC
Performance |
| Timeline |
| American Express |
| NETAPP INC |
American Express and NETAPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and NETAPP
The main advantage of trading using opposite American Express and NETAPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, NETAPP 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 NETAPP will offset losses from the drop in NETAPP's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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