Correlation Between American Express and ONEOK
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By analyzing existing cross correlation between American Express and ONEOK INC NEW, you can compare the effects of market volatilities on American Express and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ONEOK.
Diversification Opportunities for American Express and ONEOK
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and ONEOK is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ONEOK INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC NEW 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK INC NEW has no effect on the direction of American Express i.e., American Express and ONEOK go up and down completely randomly.
Pair Corralation between American Express and ONEOK
Considering the 90-day investment horizon American Express is expected to generate 1.23 times more return on investment than ONEOK. However, American Express is 1.23 times more volatile than ONEOK INC NEW. It trades about 0.29 of its potential returns per unit of risk. ONEOK INC NEW is currently generating about -0.15 per unit of risk. If you would invest 27,019 in American Express on September 3, 2024 and sell it today you would earn a total of 3,207 from holding American Express or generate 11.87% 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. ONEOK INC NEW
Performance |
| Timeline |
| American Express |
| ONEOK INC NEW |
American Express and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ONEOK
The main advantage of trading using opposite American Express and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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