Correlation Between KENEDIX OFFICE and American Express
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE 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 KENEDIX OFFICE and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and American Express, you can compare the effects of market volatilities on KENEDIX OFFICE 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 KENEDIX OFFICE with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and American Express.
Diversification Opportunities for KENEDIX OFFICE and American Express
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KENEDIX and American is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and KENEDIX OFFICE 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 KENEDIX OFFICE INV 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 KENEDIX OFFICE i.e., KENEDIX OFFICE and American Express go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and American Express
Assuming the 90 days horizon KENEDIX OFFICE INV is expected to under-perform the American Express. But the stock apears to be less risky and, when comparing its historical volatility, KENEDIX OFFICE INV is 1.34 times less risky than American Express. The stock trades about -0.02 of its potential returns per unit of risk. The American Express is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 20,723 in American Express on October 25, 2024 and sell it today you would earn a total of 10,207 from holding American Express or generate 49.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. American Express
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| American Express |
KENEDIX OFFICE and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and American Express
The main advantage of trading using opposite KENEDIX OFFICE and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE 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.| KENEDIX OFFICE vs. 24SEVENOFFICE GROUP AB | KENEDIX OFFICE vs. OFFICE DEPOT | KENEDIX OFFICE vs. AGRICULTBK HADR25 YC | KENEDIX OFFICE vs. Sumitomo Mitsui Construction |
| American Express vs. MAGNUM MINING EXP | American Express vs. MCEWEN MINING INC | American Express vs. MINCO SILVER | American Express vs. Harmony Gold Mining |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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