Correlation Between American Express and Targa
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By analyzing existing cross correlation between American Express and Targa Resources Partners, you can compare the effects of market volatilities on American Express and Targa 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 Targa. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Targa.
Diversification Opportunities for American Express and Targa
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Targa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Targa Resources Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Targa Resources Partners 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 Targa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Targa Resources Partners has no effect on the direction of American Express i.e., American Express and Targa go up and down completely randomly.
Pair Corralation between American Express and Targa
Considering the 90-day investment horizon American Express is expected to generate 4.81 times more return on investment than Targa. However, American Express is 4.81 times more volatile than Targa Resources Partners. It trades about 0.12 of its potential returns per unit of risk. Targa Resources Partners is currently generating about 0.0 per unit of risk. If you would invest 17,219 in American Express on August 28, 2024 and sell it today you would earn a total of 13,302 from holding American Express or generate 77.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
American Express vs. Targa Resources Partners
Performance |
| Timeline |
| American Express |
| Targa Resources Partners |
American Express and Targa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Targa
The main advantage of trading using opposite American Express and Targa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Targa 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 Targa will offset losses from the drop in Targa's long position.| American Express vs. Orix Corp Ads | American Express vs. Medallion Financial Corp | American Express vs. Oportun Financial Corp | American Express vs. SLM Corp Pb |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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