Correlation Between FARO Technologies and American Express
Specify exactly 2 symbols:
By analyzing existing cross correlation between FARO Technologies and American Express, you can compare the effects of market volatilities on FARO Technologies 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 FARO Technologies with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARO Technologies and American Express.
Diversification Opportunities for FARO Technologies and American Express
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FARO and American is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding FARO Technologies and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and FARO Technologies 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 FARO Technologies 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 FARO Technologies i.e., FARO Technologies and American Express go up and down completely randomly.
Pair Corralation between FARO Technologies and American Express
Assuming the 90 days horizon FARO Technologies is expected to generate 1.86 times less return on investment than American Express. In addition to that, FARO Technologies is 2.13 times more volatile than American Express. It trades about 0.03 of its total potential returns per unit of risk. American Express is currently generating about 0.11 per unit of volatility. If you would invest 27,560 in American Express on September 12, 2024 and sell it today you would earn a total of 660.00 from holding American Express or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FARO Technologies vs. American Express
Performance |
| Timeline |
| FARO Technologies |
| American Express |
FARO Technologies and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARO Technologies and American Express
The main advantage of trading using opposite FARO Technologies and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARO Technologies 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.| FARO Technologies vs. HEXAGON AB ADR1 | FARO Technologies vs. Superior Plus Corp | FARO Technologies vs. SIVERS SEMICONDUCTORS AB | FARO Technologies vs. NorAm Drilling AS |
| American Express vs. Boyd Gaming | American Express vs. GAMESTOP | American Express vs. Gamma Communications plc | American Express vs. Cogent Communications Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |