Correlation Between American Express and 828807DV6
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By analyzing existing cross correlation between American Express and SPG 585 08 MAR 53, you can compare the effects of market volatilities on American Express and 828807DV6 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 828807DV6. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 828807DV6.
Diversification Opportunities for American Express and 828807DV6
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 828807DV6 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Express and SPG 585 08 MAR 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPG 585 08 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 828807DV6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPG 585 08 has no effect on the direction of American Express i.e., American Express and 828807DV6 go up and down completely randomly.
Pair Corralation between American Express and 828807DV6
Considering the 90-day investment horizon American Express is expected to generate 1.66 times more return on investment than 828807DV6. However, American Express is 1.66 times more volatile than SPG 585 08 MAR 53. It trades about 0.1 of its potential returns per unit of risk. SPG 585 08 MAR 53 is currently generating about 0.01 per unit of risk. If you would invest 15,138 in American Express on September 3, 2024 and sell it today you would earn a total of 15,330 from holding American Express or generate 101.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.58% |
| Values | Daily Returns |
American Express vs. SPG 585 08 MAR 53
Performance |
| Timeline |
| American Express |
| SPG 585 08 |
American Express and 828807DV6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 828807DV6
The main advantage of trading using opposite American Express and 828807DV6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 828807DV6 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 828807DV6 will offset losses from the drop in 828807DV6's long position.| American Express vs. Highway Holdings Limited | American Express vs. QCR Holdings | American Express vs. Partner Communications | American Express vs. Acumen Pharmaceuticals |
| 828807DV6 vs. Ihuman Inc | 828807DV6 vs. Skillful Craftsman Education | 828807DV6 vs. Cumulus Media Class | 828807DV6 vs. Hafnia Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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