Correlation Between American Express and 855244AS8
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By analyzing existing cross correlation between American Express and STARBUCKS P 45, you can compare the effects of market volatilities on American Express and 855244AS8 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 855244AS8. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 855244AS8.
Diversification Opportunities for American Express and 855244AS8
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 855244AS8 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STARBUCKS P 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STARBUCKS P 45 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 855244AS8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STARBUCKS P 45 has no effect on the direction of American Express i.e., American Express and 855244AS8 go up and down completely randomly.
Pair Corralation between American Express and 855244AS8
Considering the 90-day investment horizon American Express is expected to generate 1.54 times more return on investment than 855244AS8. However, American Express is 1.54 times more volatile than STARBUCKS P 45. It trades about 0.28 of its potential returns per unit of risk. STARBUCKS P 45 is currently generating about 0.15 per unit of risk. If you would invest 27,043 in American Express on August 30, 2024 and sell it today you would earn a total of 3,382 from holding American Express or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
American Express vs. STARBUCKS P 45
Performance |
| Timeline |
| American Express |
| STARBUCKS P 45 |
American Express and 855244AS8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 855244AS8
The main advantage of trading using opposite American Express and 855244AS8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 855244AS8 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 855244AS8 will offset losses from the drop in 855244AS8's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. X Financial Class | American Express vs. Yirendai |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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