Correlation Between American Express and SIMON
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By analyzing existing cross correlation between American Express and SIMON PPTY GROUP, you can compare the effects of market volatilities on American Express and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and SIMON.
Diversification Opportunities for American Express and SIMON
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and SIMON is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding American Express and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of American Express i.e., American Express and SIMON go up and down completely randomly.
Pair Corralation between American Express and SIMON
Considering the 90-day investment horizon American Express is expected to generate 1.7 times more return on investment than SIMON. However, American Express is 1.7 times more volatile than SIMON PPTY GROUP. It trades about 0.17 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.03 per unit of risk. If you would invest 16,545 in American Express on August 25, 2024 and sell it today you would earn a total of 13,585 from holding American Express or generate 82.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.8% |
| Values | Daily Returns |
American Express vs. SIMON PPTY GROUP
Performance |
| Timeline |
| American Express |
| SIMON PPTY GROUP |
American Express and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and SIMON
The main advantage of trading using opposite American Express and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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