Correlation Between American Express and 88579YBG5
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By analyzing existing cross correlation between American Express and 3M MTN, you can compare the effects of market volatilities on American Express and 88579YBG5 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 88579YBG5. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 88579YBG5.
Diversification Opportunities for American Express and 88579YBG5
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 88579YBG5 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Express and 3M MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBG5 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 88579YBG5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBG5 has no effect on the direction of American Express i.e., American Express and 88579YBG5 go up and down completely randomly.
Pair Corralation between American Express and 88579YBG5
Considering the 90-day investment horizon American Express is expected to generate 2.09 times more return on investment than 88579YBG5. However, American Express is 2.09 times more volatile than 3M MTN. It trades about 0.27 of its potential returns per unit of risk. 3M MTN is currently generating about -0.21 per unit of risk. If you would invest 27,147 in American Express on August 29, 2024 and sell it today you would earn a total of 3,278 from holding American Express or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
American Express vs. 3M MTN
Performance |
| Timeline |
| American Express |
| 88579YBG5 |
American Express and 88579YBG5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 88579YBG5
The main advantage of trading using opposite American Express and 88579YBG5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 88579YBG5 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 88579YBG5 will offset losses from the drop in 88579YBG5's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
| 88579YBG5 vs. AEP TEX INC | 88579YBG5 vs. US BANK NATIONAL | 88579YBG5 vs. Nasdaq Inc | 88579YBG5 vs. Vertiv Holdings Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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