Correlation Between American Express and 842400HQ9
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By analyzing existing cross correlation between American Express and EIX 47 01 JUN 27, you can compare the effects of market volatilities on American Express and 842400HQ9 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 842400HQ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 842400HQ9.
Diversification Opportunities for American Express and 842400HQ9
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 842400HQ9 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding American Express and EIX 47 01 JUN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 47 01 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 842400HQ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 47 01 has no effect on the direction of American Express i.e., American Express and 842400HQ9 go up and down completely randomly.
Pair Corralation between American Express and 842400HQ9
Considering the 90-day investment horizon American Express is expected to generate 5.06 times more return on investment than 842400HQ9. However, American Express is 5.06 times more volatile than EIX 47 01 JUN 27. It trades about 0.17 of its potential returns per unit of risk. EIX 47 01 JUN 27 is currently generating about 0.02 per unit of risk. If you would invest 16,640 in American Express on September 4, 2024 and sell it today you would earn a total of 13,571 from holding American Express or generate 81.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
American Express vs. EIX 47 01 JUN 27
Performance |
| Timeline |
| American Express |
| EIX 47 01 |
American Express and 842400HQ9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 842400HQ9
The main advantage of trading using opposite American Express and 842400HQ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 842400HQ9 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 842400HQ9 will offset losses from the drop in 842400HQ9's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. X Financial Class | American Express vs. LendingClub Corp |
| 842400HQ9 vs. Nascent Wine | 842400HQ9 vs. China Tontine Wines | 842400HQ9 vs. National Beverage Corp | 842400HQ9 vs. Empresa Distribuidora y |
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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