Correlation Between American Express and SEAGATE
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By analyzing existing cross correlation between American Express and SEAGATE HDD CAYMAN, you can compare the effects of market volatilities on American Express and SEAGATE 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 SEAGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and SEAGATE.
Diversification Opportunities for American Express and SEAGATE
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and SEAGATE is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding American Express and SEAGATE HDD CAYMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAGATE HDD CAYMAN 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 SEAGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAGATE HDD CAYMAN has no effect on the direction of American Express i.e., American Express and SEAGATE go up and down completely randomly.
Pair Corralation between American Express and SEAGATE
Considering the 90-day investment horizon American Express is expected to generate 1.6 times more return on investment than SEAGATE. However, American Express is 1.6 times more volatile than SEAGATE HDD CAYMAN. It trades about 0.1 of its potential returns per unit of risk. SEAGATE HDD CAYMAN is currently generating about 0.0 per unit of risk. If you would invest 15,318 in American Express on September 2, 2024 and sell it today you would earn a total of 15,150 from holding American Express or generate 98.9% 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. SEAGATE HDD CAYMAN
Performance |
| Timeline |
| American Express |
| SEAGATE HDD CAYMAN |
American Express and SEAGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and SEAGATE
The main advantage of trading using opposite American Express and SEAGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, SEAGATE 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 SEAGATE will offset losses from the drop in SEAGATE's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| SEAGATE vs. SunLink Health Systems | SEAGATE vs. Fast Retailing Co | SEAGATE vs. Celsius Holdings | SEAGATE vs. BBB Foods |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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