Correlation Between American Express and 90265EAM2
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By analyzing existing cross correlation between American Express and UDR INC MEDIUM, you can compare the effects of market volatilities on American Express and 90265EAM2 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 90265EAM2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 90265EAM2.
Diversification Opportunities for American Express and 90265EAM2
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between American and 90265EAM2 is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding American Express and UDR INC MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UDR INC MEDIUM 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 90265EAM2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UDR INC MEDIUM has no effect on the direction of American Express i.e., American Express and 90265EAM2 go up and down completely randomly.
Pair Corralation between American Express and 90265EAM2
Considering the 90-day investment horizon American Express is expected to generate 26.49 times less return on investment than 90265EAM2. But when comparing it to its historical volatility, American Express is 42.41 times less risky than 90265EAM2. It trades about 0.1 of its potential returns per unit of risk. UDR INC MEDIUM is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,485 in UDR INC MEDIUM on September 2, 2024 and sell it today you would earn a total of 51.00 from holding UDR INC MEDIUM or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.36% |
| Values | Daily Returns |
American Express vs. UDR INC MEDIUM
Performance |
| Timeline |
| American Express |
| UDR INC MEDIUM |
American Express and 90265EAM2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 90265EAM2
The main advantage of trading using opposite American Express and 90265EAM2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 90265EAM2 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 90265EAM2 will offset losses from the drop in 90265EAM2's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 90265EAM2 vs. AEP TEX INC | 90265EAM2 vs. US BANK NATIONAL | 90265EAM2 vs. American Express | 90265EAM2 vs. Chevron 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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