Correlation Between American Express and NOMURA
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By analyzing existing cross correlation between American Express and NOMURA 2329 22 JAN 27, you can compare the effects of market volatilities on American Express and NOMURA 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 NOMURA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and NOMURA.
Diversification Opportunities for American Express and NOMURA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and NOMURA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding American Express and NOMURA 2329 22 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOMURA 2329 22 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 NOMURA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOMURA 2329 22 has no effect on the direction of American Express i.e., American Express and NOMURA go up and down completely randomly.
Pair Corralation between American Express and NOMURA
Considering the 90-day investment horizon American Express is expected to generate 2.66 times more return on investment than NOMURA. However, American Express is 2.66 times more volatile than NOMURA 2329 22 JAN 27. It trades about 0.17 of its potential returns per unit of risk. NOMURA 2329 22 JAN 27 is currently generating about -0.02 per unit of risk. If you would invest 16,662 in American Express on September 2, 2024 and sell it today you would earn a total of 13,806 from holding American Express or generate 82.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
American Express vs. NOMURA 2329 22 JAN 27
Performance |
| Timeline |
| American Express |
| NOMURA 2329 22 |
American Express and NOMURA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and NOMURA
The main advantage of trading using opposite American Express and NOMURA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, NOMURA 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 NOMURA will offset losses from the drop in NOMURA's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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