Correlation Between American Express and 94106LBU2
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By analyzing existing cross correlation between American Express and WM 4625 15 FEB 33, you can compare the effects of market volatilities on American Express and 94106LBU2 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 94106LBU2. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 94106LBU2.
Diversification Opportunities for American Express and 94106LBU2
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 94106LBU2 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding American Express and WM 4625 15 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WM 4625 15 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 94106LBU2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WM 4625 15 has no effect on the direction of American Express i.e., American Express and 94106LBU2 go up and down completely randomly.
Pair Corralation between American Express and 94106LBU2
Considering the 90-day investment horizon American Express is expected to generate 2.16 times more return on investment than 94106LBU2. However, American Express is 2.16 times more volatile than WM 4625 15 FEB 33. It trades about 0.1 of its potential returns per unit of risk. WM 4625 15 FEB 33 is currently generating about 0.0 per unit of risk. If you would invest 15,318 in American Express on September 2, 2024 and sell it today you would earn a total of 15,150 from holding American Express or generate 98.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.1% |
| Values | Daily Returns |
American Express vs. WM 4625 15 FEB 33
Performance |
| Timeline |
| American Express |
| WM 4625 15 |
American Express and 94106LBU2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 94106LBU2
The main advantage of trading using opposite American Express and 94106LBU2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 94106LBU2 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 94106LBU2 will offset losses from the drop in 94106LBU2's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| 94106LBU2 vs. Freedom Internet Group | 94106LBU2 vs. Weibo Corp | 94106LBU2 vs. NETGEAR | 94106LBU2 vs. MI Homes |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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