Correlation Between American Express and WALMART
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By analyzing existing cross correlation between American Express and WALMART INC 755, you can compare the effects of market volatilities on American Express and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and WALMART.
Diversification Opportunities for American Express and WALMART
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and WALMART is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Express and WALMART INC 755 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 755 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 755 has no effect on the direction of American Express i.e., American Express and WALMART go up and down completely randomly.
Pair Corralation between American Express and WALMART
Considering the 90-day investment horizon American Express is expected to generate 3.07 times more return on investment than WALMART. However, American Express is 3.07 times more volatile than WALMART INC 755. It trades about 0.12 of its potential returns per unit of risk. WALMART INC 755 is currently generating about 0.05 per unit of risk. If you would invest 21,752 in American Express on August 27, 2024 and sell it today you would earn a total of 8,378 from holding American Express or generate 38.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
American Express vs. WALMART INC 755
Performance |
| Timeline |
| American Express |
| WALMART INC 755 |
American Express and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and WALMART
The main advantage of trading using opposite American Express and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.| American Express vs. SLM Corp | American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Medallion Financial Corp |
| WALMART vs. Deluxe | WALMART vs. 51Talk Online Education | WALMART vs. WiMi Hologram Cloud | WALMART vs. Keurig Dr Pepper |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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