Correlation Between American Express and 694308KG1
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By analyzing existing cross correlation between American Express and PCG 59 15 JUN 32, you can compare the effects of market volatilities on American Express and 694308KG1 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 694308KG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 694308KG1.
Diversification Opportunities for American Express and 694308KG1
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 694308KG1 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding American Express and PCG 59 15 JUN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 59 15 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 694308KG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 59 15 has no effect on the direction of American Express i.e., American Express and 694308KG1 go up and down completely randomly.
Pair Corralation between American Express and 694308KG1
Considering the 90-day investment horizon American Express is expected to generate 4.05 times more return on investment than 694308KG1. However, American Express is 4.05 times more volatile than PCG 59 15 JUN 32. It trades about 0.17 of its potential returns per unit of risk. PCG 59 15 JUN 32 is currently generating about -0.23 per unit of risk. If you would invest 26,552 in American Express on August 25, 2024 and sell it today you would earn a total of 3,578 from holding American Express or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.56% |
| Values | Daily Returns |
American Express vs. PCG 59 15 JUN 32
Performance |
| Timeline |
| American Express |
| PCG 59 15 |
American Express and 694308KG1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 694308KG1
The main advantage of trading using opposite American Express and 694308KG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 694308KG1 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 694308KG1 will offset losses from the drop in 694308KG1's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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