Correlation Between Glencore Plc and American Express
Can any of the company-specific risk be diversified away by investing in both Glencore Plc 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 Glencore Plc and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore plc and American Express, you can compare the effects of market volatilities on Glencore Plc 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 Glencore Plc with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore Plc and American Express.
Diversification Opportunities for Glencore Plc and American Express
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glencore and American is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Glencore plc and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Glencore Plc 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 Glencore plc 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 Glencore Plc i.e., Glencore Plc and American Express go up and down completely randomly.
Pair Corralation between Glencore Plc and American Express
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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Glencore plc vs. American Express
Performance |
| Timeline |
| Glencore plc |
| American Express |
Glencore Plc and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore Plc and American Express
The main advantage of trading using opposite Glencore Plc and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore Plc 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.| Glencore Plc vs. First Republic Bank | Glencore Plc vs. Micron Technology | Glencore Plc vs. Taiwan Semiconductor Manufacturing | Glencore Plc vs. Verizon Communications |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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