Correlation Between Rigolleau and American Express

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Rigolleau 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 Rigolleau and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rigolleau SA and American Express Co, you can compare the effects of market volatilities on Rigolleau 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 Rigolleau with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rigolleau and American Express.

Diversification Opportunities for Rigolleau and American Express

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Rigolleau and American is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rigolleau SA and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Rigolleau 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 Rigolleau SA 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 Rigolleau i.e., Rigolleau and American Express go up and down completely randomly.

Pair Corralation between Rigolleau and American Express

Assuming the 90 days trading horizon Rigolleau SA is expected to under-perform the American Express. In addition to that, Rigolleau is 1.42 times more volatile than American Express Co. It trades about -0.11 of its total potential returns per unit of risk. American Express Co is currently generating about -0.11 per unit of volatility. If you would invest  2,340,000  in American Express Co on December 11, 2024 and sell it today you would lose (200,000) from holding American Express Co or give up 8.55% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Rigolleau SA  vs.  American Express Co

 Performance 
       Timeline  
Rigolleau SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Rigolleau SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
American Express 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days American Express Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, American Express is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rigolleau and American Express Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Rigolleau and American Express

The main advantage of trading using opposite Rigolleau and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rigolleau 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.
The idea behind Rigolleau SA and American Express Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets