Correlation Between Edesa Holding and American Express
Can any of the company-specific risk be diversified away by investing in both Edesa Holding 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 Edesa Holding and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edesa Holding SA and American Express Co, you can compare the effects of market volatilities on Edesa Holding 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 Edesa Holding with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and American Express.
Diversification Opportunities for Edesa Holding and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding 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 Edesa Holding 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 Edesa Holding 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 Edesa Holding i.e., Edesa Holding and American Express go up and down completely randomly.
Pair Corralation between Edesa Holding and American Express
If you would invest 2,077,500 in American Express Co on August 26, 2024 and sell it today you would earn a total of 147,500 from holding American Express Co or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Edesa Holding SA vs. American Express Co
Performance |
| Timeline |
| Edesa Holding SA |
| American Express |
Edesa Holding and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and American Express
The main advantage of trading using opposite Edesa Holding and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding 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.| Edesa Holding vs. American Express Co | Edesa Holding vs. United States Steel | Edesa Holding vs. Capex SA | Edesa Holding vs. Pfizer Inc |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |