Correlation Between American Express and 970648AJ0
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and WTW 295 15 SEP 29, you can compare the effects of market volatilities on American Express and 970648AJ0 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 970648AJ0. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 970648AJ0.
Diversification Opportunities for American Express and 970648AJ0
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and 970648AJ0 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding American Express and WTW 295 15 SEP 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WTW 295 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 970648AJ0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WTW 295 15 has no effect on the direction of American Express i.e., American Express and 970648AJ0 go up and down completely randomly.
Pair Corralation between American Express and 970648AJ0
Considering the 90-day investment horizon American Express is expected to generate 1.99 times more return on investment than 970648AJ0. However, American Express is 1.99 times more volatile than WTW 295 15 SEP 29. It trades about 0.25 of its potential returns per unit of risk. WTW 295 15 SEP 29 is currently generating about -0.19 per unit of risk. If you would invest 27,408 in American Express on August 31, 2024 and sell it today you would earn a total of 3,017 from holding American Express or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Express vs. WTW 295 15 SEP 29
Performance |
| Timeline |
| American Express |
| WTW 295 15 |
American Express and 970648AJ0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and 970648AJ0
The main advantage of trading using opposite American Express and 970648AJ0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 970648AJ0 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 970648AJ0 will offset losses from the drop in 970648AJ0'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 |
| 970648AJ0 vs. Seadrill Limited | 970648AJ0 vs. Summit Materials | 970648AJ0 vs. Capital Clean Energy | 970648AJ0 vs. Noble plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |