Correlation Between American Express and STORE
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By analyzing existing cross correlation between American Express and STORE CAP P, you can compare the effects of market volatilities on American Express and STORE 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 STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and STORE.
Diversification Opportunities for American Express and STORE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and STORE is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of American Express i.e., American Express and STORE go up and down completely randomly.
Pair Corralation between American Express and STORE
Considering the 90-day investment horizon American Express is expected to generate 0.74 times more return on investment than STORE. However, American Express is 1.36 times less risky than STORE. It trades about 0.28 of its potential returns per unit of risk. STORE CAP P is currently generating about -0.25 per unit of risk. If you would invest 27,269 in American Express on September 2, 2024 and sell it today you would earn a total of 3,199 from holding American Express or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
American Express vs. STORE CAP P
Performance |
| Timeline |
| American Express |
| STORE CAP P |
American Express and STORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and STORE
The main advantage of trading using opposite American Express and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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