Correlation Between American Express and 7591EPAR1
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By analyzing existing cross correlation between American Express and RF 575, you can compare the effects of market volatilities on American Express and 7591EPAR1 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 7591EPAR1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 7591EPAR1.
Diversification Opportunities for American Express and 7591EPAR1
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 7591EPAR1 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding American Express and RF 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 7591EPAR1 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 7591EPAR1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 7591EPAR1 has no effect on the direction of American Express i.e., American Express and 7591EPAR1 go up and down completely randomly.
Pair Corralation between American Express and 7591EPAR1
Considering the 90-day investment horizon American Express is expected to generate 2.17 times more return on investment than 7591EPAR1. However, American Express is 2.17 times more volatile than RF 575. It trades about 0.18 of its potential returns per unit of risk. RF 575 is currently generating about -0.11 per unit of risk. If you would invest 26,789 in American Express on September 3, 2024 and sell it today you would earn a total of 3,679 from holding American Express or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. RF 575
Performance |
| Timeline |
| American Express |
| 7591EPAR1 |
American Express and 7591EPAR1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 7591EPAR1
The main advantage of trading using opposite American Express and 7591EPAR1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 7591EPAR1 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 7591EPAR1 will offset losses from the drop in 7591EPAR1's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| 7591EPAR1 vs. LithiumBank Resources Corp | 7591EPAR1 vs. Western Union Co | 7591EPAR1 vs. Bridgford Foods | 7591EPAR1 vs. SunOpta |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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