Correlation Between American Express and TENCNT
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and TENCNT 3975 11 APR 29, you can compare the effects of market volatilities on American Express and TENCNT 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 TENCNT. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and TENCNT.
Diversification Opportunities for American Express and TENCNT
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and TENCNT is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Express and TENCNT 3975 11 APR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TENCNT 75 11 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 TENCNT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TENCNT 75 11 has no effect on the direction of American Express i.e., American Express and TENCNT go up and down completely randomly.
Pair Corralation between American Express and TENCNT
Considering the 90-day investment horizon American Express is expected to generate 1.69 times more return on investment than TENCNT. However, American Express is 1.69 times more volatile than TENCNT 3975 11 APR 29. It trades about 0.28 of its potential returns per unit of risk. TENCNT 3975 11 APR 29 is currently generating about -0.95 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 Together |
| Strength | Significant |
| Accuracy | 19.05% |
| Values | Daily Returns |
American Express vs. TENCNT 3975 11 APR 29
Performance |
| Timeline |
| American Express |
| TENCNT 75 11 |
American Express and TENCNT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and TENCNT
The main advantage of trading using opposite American Express and TENCNT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, TENCNT 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 TENCNT will offset losses from the drop in TENCNT's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| TENCNT vs. Iridium Communications | TENCNT vs. WiMi Hologram Cloud | TENCNT vs. Pinterest | TENCNT vs. CECO Environmental Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |