Correlation Between American Express and UNITED
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By analyzing existing cross correlation between American Express and UNITED TECHNOLOGIES P, 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
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and UNITED is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding American Express and UNITED TECHNOLOGIES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED TECHNOLOGIES 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 TECHNOLOGIES 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 2.44 times more return on investment than UNITED. However, American Express is 2.44 times more volatile than UNITED TECHNOLOGIES P. It trades about 0.22 of its potential returns per unit of risk. UNITED TECHNOLOGIES P is currently generating about 0.25 per unit of risk. If you would invest 29,773 in American Express on November 3, 2024 and sell it today you would earn a total of 1,954 from holding American Express or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Express vs. UNITED TECHNOLOGIES P
Performance |
| Timeline |
| American Express |
| UNITED TECHNOLOGIES |
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. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| UNITED vs. AEP TEX INC | UNITED vs. US BANK NATIONAL | UNITED vs. Valley National Bancorp | UNITED vs. LightPath Technologies |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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