Correlation Between American Express and SASOL
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By analyzing existing cross correlation between American Express and SASOL FING USA, you can compare the effects of market volatilities on American Express and SASOL 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 SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and SASOL.
Diversification Opportunities for American Express and SASOL
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and SASOL is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding American Express and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA 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 SASOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASOL FING USA has no effect on the direction of American Express i.e., American Express and SASOL go up and down completely randomly.
Pair Corralation between American Express and SASOL
Considering the 90-day investment horizon American Express is expected to generate 1.12 times more return on investment than SASOL. However, American Express is 1.12 times more volatile than SASOL FING USA. It trades about 0.3 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.1 per unit of risk. If you would invest 27,008 in American Express on September 1, 2024 and sell it today you would earn a total of 3,460 from holding American Express or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Express vs. SASOL FING USA
Performance |
| Timeline |
| American Express |
| SASOL FING USA |
American Express and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and SASOL
The main advantage of trading using opposite American Express and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, SASOL 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 SASOL will offset losses from the drop in SASOL's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| SASOL vs. Townsquare Media | SASOL vs. Magnite | SASOL vs. Western Sierra Mining | SASOL vs. Zijin Mining Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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