Correlation Between American Express and REPUBLIC
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By analyzing existing cross correlation between American Express and REPUBLIC SERVICES INC, you can compare the effects of market volatilities on American Express and REPUBLIC 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 REPUBLIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and REPUBLIC.
Diversification Opportunities for American Express and REPUBLIC
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and REPUBLIC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding American Express and REPUBLIC SERVICES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REPUBLIC SERVICES 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 REPUBLIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REPUBLIC SERVICES INC has no effect on the direction of American Express i.e., American Express and REPUBLIC go up and down completely randomly.
Pair Corralation between American Express and REPUBLIC
Considering the 90-day investment horizon American Express is expected to under-perform the REPUBLIC. But the stock apears to be less risky and, when comparing its historical volatility, American Express is 1.09 times less risky than REPUBLIC. The stock trades about -0.29 of its potential returns per unit of risk. The REPUBLIC SERVICES INC is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 8,081 in REPUBLIC SERVICES INC on November 29, 2024 and sell it today you would lose (291.00) from holding REPUBLIC SERVICES INC or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. REPUBLIC SERVICES INC
Performance |
| Timeline |
| American Express |
| REPUBLIC SERVICES INC |
American Express and REPUBLIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and REPUBLIC
The main advantage of trading using opposite American Express and REPUBLIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, REPUBLIC 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 REPUBLIC will offset losses from the drop in REPUBLIC's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| REPUBLIC vs. Data3 Limited | REPUBLIC vs. Pinterest | REPUBLIC vs. Definitive Healthcare Corp | REPUBLIC vs. Alternative Investment |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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