Correlation Between American Express and PARKER
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By analyzing existing cross correlation between American Express and PARKER HANNIFIN P MEDIUM, you can compare the effects of market volatilities on American Express and PARKER 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 PARKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and PARKER.
Diversification Opportunities for American Express and PARKER
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and PARKER is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding American Express and PARKER HANNIFIN P MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKER HANNIFIN P 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 PARKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKER HANNIFIN P has no effect on the direction of American Express i.e., American Express and PARKER go up and down completely randomly.
Pair Corralation between American Express and PARKER
Considering the 90-day investment horizon American Express is expected to generate 0.94 times more return on investment than PARKER. However, American Express is 1.07 times less risky than PARKER. It trades about 0.19 of its potential returns per unit of risk. PARKER HANNIFIN P MEDIUM is currently generating about -0.13 per unit of risk. If you would invest 28,764 in American Express on September 14, 2024 and sell it today you would earn a total of 1,266 from holding American Express or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. PARKER HANNIFIN P MEDIUM
Performance |
| Timeline |
| American Express |
| PARKER HANNIFIN P |
American Express and PARKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and PARKER
The main advantage of trading using opposite American Express and PARKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, PARKER 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 PARKER will offset losses from the drop in PARKER's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Upstart Holdings | American Express vs. Mastercard |
| PARKER vs. Delek Logistics Partners | PARKER vs. JD Sports Fashion | PARKER vs. Eastman Kodak Co | PARKER vs. Fernhill Beverage |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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