Correlation Between American Express and 857477BS1
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By analyzing existing cross correlation between American Express and STT 2203 07 FEB 28, you can compare the effects of market volatilities on American Express and 857477BS1 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 857477BS1. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 857477BS1.
Diversification Opportunities for American Express and 857477BS1
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and 857477BS1 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STT 2203 07 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STT 2203 07 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 857477BS1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STT 2203 07 has no effect on the direction of American Express i.e., American Express and 857477BS1 go up and down completely randomly.
Pair Corralation between American Express and 857477BS1
Considering the 90-day investment horizon American Express is expected to generate 1.83 times more return on investment than 857477BS1. However, American Express is 1.83 times more volatile than STT 2203 07 FEB 28. It trades about 0.17 of its potential returns per unit of risk. STT 2203 07 FEB 28 is currently generating about 0.0 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 13,586 from holding American Express or generate 81.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
American Express vs. STT 2203 07 FEB 28
Performance |
| Timeline |
| American Express |
| STT 2203 07 |
American Express and 857477BS1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 857477BS1
The main advantage of trading using opposite American Express and 857477BS1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 857477BS1 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 857477BS1 will offset losses from the drop in 857477BS1's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Enova International | American Express vs. X Financial Class |
| 857477BS1 vs. AEP TEX INC | 857477BS1 vs. US BANK NATIONAL | 857477BS1 vs. MetLife | 857477BS1 vs. Brera Holdings PLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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