Correlation Between Capex SA and American Express
Can any of the company-specific risk be diversified away by investing in both Capex SA and American Express at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Capex SA and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capex SA and American Express Co, you can compare the effects of market volatilities on Capex SA and American Express 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 Capex SA with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capex SA and American Express.
Diversification Opportunities for Capex SA and American Express
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Capex and American is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Capex SA and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Capex SA 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 Capex SA are associated (or correlated) with American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Capex SA i.e., Capex SA and American Express go up and down completely randomly.
Pair Corralation between Capex SA and American Express
Assuming the 90 days trading horizon Capex SA is expected to generate 1.15 times more return on investment than American Express. However, Capex SA is 1.15 times more volatile than American Express Co. It trades about 0.29 of its potential returns per unit of risk. American Express Co is currently generating about 0.17 per unit of risk. If you would invest 620,000 in Capex SA on August 26, 2024 and sell it today you would earn a total of 90,000 from holding Capex SA or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capex SA vs. American Express Co
Performance |
| Timeline |
| Capex SA |
| American Express |
Capex SA and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capex SA and American Express
The main advantage of trading using opposite Capex SA and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capex SA position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| Capex SA vs. Transportadora de Gas | Capex SA vs. Harmony Gold Mining | Capex SA vs. Agrometal SAI | Capex SA vs. Compania de Transporte |
| American Express vs. Harmony Gold Mining | American Express vs. Transportadora de Gas | American Express vs. Agrometal SAI | American Express vs. United States Steel |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |