Correlation Between Global E and AMERICAN
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By analyzing existing cross correlation between Global E Online and AMERICAN INTL GROUP, you can compare the effects of market volatilities on Global E and AMERICAN 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 Global E with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and AMERICAN.
Diversification Opportunities for Global E and AMERICAN
Excellent diversification
The 3 months correlation between Global and AMERICAN is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online and AMERICAN INTL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN INTL GROUP and Global E 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 Global E Online are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN INTL GROUP has no effect on the direction of Global E i.e., Global E and AMERICAN go up and down completely randomly.
Pair Corralation between Global E and AMERICAN
Given the investment horizon of 90 days Global E Online is expected to generate 6.36 times more return on investment than AMERICAN. However, Global E is 6.36 times more volatile than AMERICAN INTL GROUP. It trades about 0.06 of its potential returns per unit of risk. AMERICAN INTL GROUP is currently generating about -0.01 per unit of risk. If you would invest 3,986 in Global E Online on September 13, 2024 and sell it today you would earn a total of 1,562 from holding Global E Online or generate 39.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.73% |
| Values | Daily Returns |
Global E Online vs. AMERICAN INTL GROUP
Performance |
| Timeline |
| Global E Online |
| AMERICAN INTL GROUP |
Global E and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global E and AMERICAN
The main advantage of trading using opposite Global E and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E position performs unexpectedly, AMERICAN 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 will offset losses from the drop in AMERICAN's long position.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
| AMERICAN vs. American Airlines Group | AMERICAN vs. Noble plc | AMERICAN vs. NuRAN Wireless | AMERICAN vs. Sphere Entertainment Co |
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..
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