Correlation Between American Express and STATE
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By analyzing existing cross correlation between American Express and STATE STREET P, you can compare the effects of market volatilities on American Express and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and STATE.
Diversification Opportunities for American Express and STATE
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and STATE is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of American Express i.e., American Express and STATE go up and down completely randomly.
Pair Corralation between American Express and STATE
Considering the 90-day investment horizon American Express is expected to generate 4.72 times more return on investment than STATE. However, American Express is 4.72 times more volatile than STATE STREET P. It trades about 0.25 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.17 per unit of risk. If you would invest 27,408 in American Express on August 31, 2024 and sell it today you would earn a total of 3,017 from holding American Express or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. STATE STREET P
Performance |
| Timeline |
| American Express |
| STATE STREET P |
American Express and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and STATE
The main advantage of trading using opposite American Express and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE's long position.| American Express vs. Visa Class A | American Express vs. RLJ Lodging Trust | American Express vs. Aquagold International | American Express vs. Stepstone Group |
| STATE vs. Molson Coors Brewing | STATE vs. Compania Cervecerias Unidas | STATE vs. Vita Coco | STATE vs. Abcellera Biologics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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