Correlation Between American Express and SOUTHERN
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and SOUTHERN CALIFORNIA EDISON, you can compare the effects of market volatilities on American Express and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and SOUTHERN.
Diversification Opportunities for American Express and SOUTHERN
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and SOUTHERN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding American Express and SOUTHERN CALIFORNIA EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIFORNIA 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIFORNIA has no effect on the direction of American Express i.e., American Express and SOUTHERN go up and down completely randomly.
Pair Corralation between American Express and SOUTHERN
Considering the 90-day investment horizon American Express is expected to generate 34.65 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, American Express is 50.78 times less risky than SOUTHERN. It trades about 0.11 of its potential returns per unit of risk. SOUTHERN CALIFORNIA EDISON is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,706 in SOUTHERN CALIFORNIA EDISON on September 12, 2024 and sell it today you would lose (434.00) from holding SOUTHERN CALIFORNIA EDISON or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.84% |
| Values | Daily Returns |
American Express vs. SOUTHERN CALIFORNIA EDISON
Performance |
| Timeline |
| American Express |
| SOUTHERN CALIFORNIA |
American Express and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and SOUTHERN
The main advantage of trading using opposite American Express and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| American Express vs. Victory Integrity Smallmid Cap | American Express vs. Hilton Worldwide Holdings | American Express vs. NVIDIA | American Express vs. JPMorgan Chase Co |
| SOUTHERN vs. Cedar Realty Trust | SOUTHERN vs. Sphere Entertainment Co | SOUTHERN vs. Arhaus Inc | SOUTHERN vs. Zhihu Inc ADR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |