Correlation Between American Express and UNITED
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By analyzing existing cross correlation between American Express and UNITED PARCEL SVC, you can compare the effects of market volatilities on American Express and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and UNITED.
Diversification Opportunities for American Express and UNITED
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and UNITED is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Express and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of American Express i.e., American Express and UNITED go up and down completely randomly.
Pair Corralation between American Express and UNITED
Considering the 90-day investment horizon American Express is expected to generate 1.69 times more return on investment than UNITED. However, American Express is 1.69 times more volatile than UNITED PARCEL SVC. It trades about 0.13 of its potential returns per unit of risk. UNITED PARCEL SVC is currently generating about 0.0 per unit of risk. If you would invest 15,043 in American Express on August 31, 2024 and sell it today you would earn a total of 15,382 from holding American Express or generate 102.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.37% |
| Values | Daily Returns |
American Express vs. UNITED PARCEL SVC
Performance |
| Timeline |
| American Express |
| UNITED PARCEL SVC |
American Express and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and UNITED
The main advantage of trading using opposite American Express and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED'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 |
| UNITED vs. Comstock Holding Companies | UNITED vs. Montauk Renewables | UNITED vs. Bank of America | UNITED vs. KNOT Offshore Partners |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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