Correlation Between American Express and TARGET
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By analyzing existing cross correlation between American Express and TARGET PORATION, you can compare the effects of market volatilities on American Express and TARGET 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 TARGET. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and TARGET.
Diversification Opportunities for American Express and TARGET
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and TARGET is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding American Express and TARGET PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TARGET PORATION 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 TARGET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TARGET PORATION has no effect on the direction of American Express i.e., American Express and TARGET go up and down completely randomly.
Pair Corralation between American Express and TARGET
Considering the 90-day investment horizon American Express is expected to generate 5.68 times more return on investment than TARGET. However, American Express is 5.68 times more volatile than TARGET PORATION. It trades about 0.1 of its potential returns per unit of risk. TARGET PORATION is currently generating about 0.0 per unit of risk. If you would invest 14,696 in American Express on August 31, 2024 and sell it today you would earn a total of 15,772 from holding American Express or generate 107.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
American Express vs. TARGET PORATION
Performance |
| Timeline |
| American Express |
| TARGET PORATION |
American Express and TARGET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and TARGET
The main advantage of trading using opposite American Express and TARGET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, TARGET 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 TARGET will offset losses from the drop in TARGET'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 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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