Correlation Between American Express and PRUDENTIAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and PRUDENTIAL FINANCIAL INC, you can compare the effects of market volatilities on American Express and PRUDENTIAL 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 PRUDENTIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and PRUDENTIAL.
Diversification Opportunities for American Express and PRUDENTIAL
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and PRUDENTIAL is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding American Express and PRUDENTIAL FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRUDENTIAL FINANCIAL INC 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 PRUDENTIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRUDENTIAL FINANCIAL INC has no effect on the direction of American Express i.e., American Express and PRUDENTIAL go up and down completely randomly.
Pair Corralation between American Express and PRUDENTIAL
Considering the 90-day investment horizon American Express is expected to generate 1.84 times more return on investment than PRUDENTIAL. However, American Express is 1.84 times more volatile than PRUDENTIAL FINANCIAL INC. It trades about 0.32 of its potential returns per unit of risk. PRUDENTIAL FINANCIAL INC is currently generating about -0.09 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 3,449 from holding American Express or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
American Express vs. PRUDENTIAL FINANCIAL INC
Performance |
| Timeline |
| American Express |
| PRUDENTIAL FINANCIAL INC |
American Express and PRUDENTIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and PRUDENTIAL
The main advantage of trading using opposite American Express and PRUDENTIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, PRUDENTIAL 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 PRUDENTIAL will offset losses from the drop in PRUDENTIAL's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| PRUDENTIAL vs. AEP TEX INC | PRUDENTIAL vs. US BANK NATIONAL | PRUDENTIAL vs. Jackson Financial | PRUDENTIAL vs. MetLife |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |