Correlation Between American Express and TRANSCANADA
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and TRANSCANADA PIPELINES LTD, you can compare the effects of market volatilities on American Express and TRANSCANADA 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 TRANSCANADA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and TRANSCANADA.
Diversification Opportunities for American Express and TRANSCANADA
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and TRANSCANADA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American Express and TRANSCANADA PIPELINES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCANADA PIPELINES LTD 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 TRANSCANADA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCANADA PIPELINES LTD has no effect on the direction of American Express i.e., American Express and TRANSCANADA go up and down completely randomly.
Pair Corralation between American Express and TRANSCANADA
Considering the 90-day investment horizon American Express is expected to generate 0.98 times more return on investment than TRANSCANADA. However, American Express is 1.02 times less risky than TRANSCANADA. It trades about 0.1 of its potential returns per unit of risk. TRANSCANADA PIPELINES LTD is currently generating about 0.0 per unit of risk. If you would invest 14,986 in American Express on August 30, 2024 and sell it today you would earn a total of 15,439 from holding American Express or generate 103.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
American Express vs. TRANSCANADA PIPELINES LTD
Performance |
| Timeline |
| American Express |
| TRANSCANADA PIPELINES LTD |
American Express and TRANSCANADA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and TRANSCANADA
The main advantage of trading using opposite American Express and TRANSCANADA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, TRANSCANADA 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 TRANSCANADA will offset losses from the drop in TRANSCANADA's long position.| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
| TRANSCANADA vs. AEP TEX INC | TRANSCANADA vs. US BANK NATIONAL | TRANSCANADA vs. Nasdaq Inc | TRANSCANADA 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |