Correlation Between American Express and ORACLE
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By analyzing existing cross correlation between American Express and ORACLE P 4125, you can compare the effects of market volatilities on American Express and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ORACLE.
Diversification Opportunities for American Express and ORACLE
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and ORACLE is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ORACLE P 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 4125 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 4125 has no effect on the direction of American Express i.e., American Express and ORACLE go up and down completely randomly.
Pair Corralation between American Express and ORACLE
Considering the 90-day investment horizon American Express is expected to generate 0.48 times more return on investment than ORACLE. However, American Express is 2.07 times less risky than ORACLE. It trades about 0.22 of its potential returns per unit of risk. ORACLE P 4125 is currently generating about -0.21 per unit of risk. If you would invest 29,773 in American Express on November 3, 2024 and sell it today you would earn a total of 1,972 from holding American Express or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. ORACLE P 4125
Performance |
| Timeline |
| American Express |
| ORACLE P 4125 |
American Express and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and ORACLE
The main advantage of trading using opposite American Express and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| ORACLE vs. Yuexiu Transport Infrastructure | ORACLE vs. Lindblad Expeditions Holdings | ORACLE vs. Cheniere Energy Partners | ORACLE vs. Coty Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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