Correlation Between Empresa Distribuidora and American Express
Can any of the company-specific risk be diversified away by investing in both Empresa Distribuidora 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 Empresa Distribuidora and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empresa Distribuidora Electrica and American Express Co, you can compare the effects of market volatilities on Empresa Distribuidora 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 Empresa Distribuidora with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Distribuidora and American Express.
Diversification Opportunities for Empresa Distribuidora and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Empresa and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Distribuidora Electric and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Empresa Distribuidora 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 Empresa Distribuidora Electrica 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 Empresa Distribuidora i.e., Empresa Distribuidora and American Express go up and down completely randomly.
Pair Corralation between Empresa Distribuidora and American Express
If you would invest 345,300 in American Express Co on August 26, 2024 and sell it today you would earn a total of 1,879,700 from holding American Express Co or generate 544.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Empresa Distribuidora Electric vs. American Express Co
Performance |
| Timeline |
| Empresa Distribuidora |
| American Express |
Empresa Distribuidora and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Distribuidora and American Express
The main advantage of trading using opposite Empresa Distribuidora and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Distribuidora 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.| Empresa Distribuidora vs. American Express Co | Empresa Distribuidora vs. United States Steel | Empresa Distribuidora vs. Capex SA | Empresa Distribuidora 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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