Correlation Between American Express and WPLAU
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and WPLAU 37 15 SEP 26, you can compare the effects of market volatilities on American Express and WPLAU 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 WPLAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and WPLAU.
Diversification Opportunities for American Express and WPLAU
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and WPLAU is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding American Express and WPLAU 37 15 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPLAU 37 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 WPLAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPLAU 37 15 has no effect on the direction of American Express i.e., American Express and WPLAU go up and down completely randomly.
Pair Corralation between American Express and WPLAU
Considering the 90-day investment horizon American Express is expected to generate 6.58 times more return on investment than WPLAU. However, American Express is 6.58 times more volatile than WPLAU 37 15 SEP 26. It trades about 0.17 of its potential returns per unit of risk. WPLAU 37 15 SEP 26 is currently generating about 0.1 per unit of risk. If you would invest 16,640 in American Express on September 4, 2024 and sell it today you would earn a total of 13,571 from holding American Express or generate 81.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 33.2% |
| Values | Daily Returns |
American Express vs. WPLAU 37 15 SEP 26
Performance |
| Timeline |
| American Express |
| WPLAU 37 15 |
American Express and WPLAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and WPLAU
The main advantage of trading using opposite American Express and WPLAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, WPLAU 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 WPLAU will offset losses from the drop in WPLAU's long position.| American Express vs. 360 Finance | American Express vs. Enova International | American Express vs. X Financial Class | American Express vs. LendingClub Corp |
| WPLAU vs. Senmiao Technology | WPLAU vs. Black Hills | WPLAU vs. Guangdong Investment Limited | WPLAU vs. Pinterest |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |