Correlation Between American Express and WELLS
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By analyzing existing cross correlation between American Express and WELLS FARGO NEW, you can compare the effects of market volatilities on American Express and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and WELLS.
Diversification Opportunities for American Express and WELLS
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and WELLS is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding American Express and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO NEW 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of American Express i.e., American Express and WELLS go up and down completely randomly.
Pair Corralation between American Express and WELLS
Considering the 90-day investment horizon American Express is expected to generate 1.38 times more return on investment than WELLS. However, American Express is 1.38 times more volatile than WELLS FARGO NEW. It trades about 0.12 of its potential returns per unit of risk. WELLS FARGO NEW is currently generating about 0.02 per unit of risk. If you would invest 16,842 in American Express on September 1, 2024 and sell it today you would earn a total of 13,626 from holding American Express or generate 80.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
American Express vs. WELLS FARGO NEW
Performance |
| Timeline |
| American Express |
| WELLS FARGO NEW |
American Express and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and WELLS
The main advantage of trading using opposite American Express and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS's long position.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
| WELLS vs. Western Sierra Mining | WELLS vs. Harmony Gold Mining | WELLS vs. Jacobs Solutions | WELLS vs. ChampionX |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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