Correlation Between American Express and NORSK
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By analyzing existing cross correlation between American Express and NORSK HYDRO A, you can compare the effects of market volatilities on American Express and NORSK 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 NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and NORSK.
Diversification Opportunities for American Express and NORSK
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and NORSK is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding American Express and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A 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 NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of American Express i.e., American Express and NORSK go up and down completely randomly.
Pair Corralation between American Express and NORSK
Considering the 90-day investment horizon American Express is expected to generate 1.76 times more return on investment than NORSK. However, American Express is 1.76 times more volatile than NORSK HYDRO A. It trades about 0.12 of its potential returns per unit of risk. NORSK HYDRO A is currently generating about -0.01 per unit of risk. If you would invest 21,014 in American Express on November 5, 2024 and sell it today you would earn a total of 10,731 from holding American Express or generate 51.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.26% |
| Values | Daily Returns |
American Express vs. NORSK HYDRO A
Performance |
| Timeline |
| American Express |
| NORSK HYDRO A |
American Express and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and NORSK
The main advantage of trading using opposite American Express and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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