Correlation Between Gentera SAB and American Express
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By analyzing existing cross correlation between Gentera SAB de and American Express, you can compare the effects of market volatilities on Gentera SAB 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 Gentera SAB with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentera SAB and American Express.
Diversification Opportunities for Gentera SAB and American Express
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gentera and American is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gentera SAB de and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Gentera SAB 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 Gentera SAB de 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 Gentera SAB i.e., Gentera SAB and American Express go up and down completely randomly.
Pair Corralation between Gentera SAB and American Express
Assuming the 90 days trading horizon Gentera SAB de is expected to under-perform the American Express. But the stock apears to be less risky and, when comparing its historical volatility, Gentera SAB de is 1.21 times less risky than American Express. The stock trades about -0.04 of its potential returns per unit of risk. The American Express is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 543,770 in American Express on August 29, 2024 and sell it today you would earn a total of 84,230 from holding American Express or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentera SAB de vs. American Express
Performance |
| Timeline |
| Gentera SAB de |
| American Express |
Gentera SAB and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentera SAB and American Express
The main advantage of trading using opposite Gentera SAB and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentera SAB 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.| Gentera SAB vs. Walmart | Gentera SAB vs. Amazon Inc | Gentera SAB vs. Accenture plc | Gentera SAB vs. Target |
| American Express vs. McEwen Mining | American Express vs. DXC Technology | American Express vs. Delta Air Lines | American Express vs. Cognizant Technology Solutions |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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