Correlation Between American Express and Outfront
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and Outfront Media Capital, you can compare the effects of market volatilities on American Express and Outfront 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 Outfront. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Outfront.
Diversification Opportunities for American Express and Outfront
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Outfront is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Outfront Media Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media Capital 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 Outfront. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media Capital has no effect on the direction of American Express i.e., American Express and Outfront go up and down completely randomly.
Pair Corralation between American Express and Outfront
Considering the 90-day investment horizon American Express is expected to generate 0.7 times more return on investment than Outfront. However, American Express is 1.43 times less risky than Outfront. It trades about 0.28 of its potential returns per unit of risk. Outfront Media Capital is currently generating about -0.18 per unit of risk. If you would invest 27,019 in American Express on September 5, 2024 and sell it today you would earn a total of 3,192 from holding American Express or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
American Express vs. Outfront Media Capital
Performance |
| Timeline |
| American Express |
| Outfront Media Capital |
American Express and Outfront Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Outfront
The main advantage of trading using opposite American Express and Outfront positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Outfront 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 Outfront will offset losses from the drop in Outfront's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. Navient Corp | American Express vs. Sentage Holdings |
| Outfront vs. Uber Technologies | Outfront vs. VirnetX Holding Corp | Outfront vs. LithiumBank Resources Corp | Outfront vs. Western Union Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |