Correlation Between Sycamore Entmt and American Express
Can any of the company-specific risk be diversified away by investing in both Sycamore Entmt 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 Sycamore Entmt and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sycamore Entmt Grp and American Express, you can compare the effects of market volatilities on Sycamore Entmt 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 Sycamore Entmt with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sycamore Entmt and American Express.
Diversification Opportunities for Sycamore Entmt and American Express
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sycamore and American is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Sycamore Entmt 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 Sycamore Entmt Grp 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 Sycamore Entmt i.e., Sycamore Entmt and American Express go up and down completely randomly.
Pair Corralation between Sycamore Entmt and American Express
Given the investment horizon of 90 days Sycamore Entmt Grp is expected to under-perform the American Express. In addition to that, Sycamore Entmt is 8.94 times more volatile than American Express. It trades about -0.03 of its total potential returns per unit of risk. American Express is currently generating about 0.19 per unit of volatility. If you would invest 29,810 in American Express on October 23, 2024 and sell it today you would earn a total of 1,446 from holding American Express or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sycamore Entmt Grp vs. American Express
Performance |
| Timeline |
| Sycamore Entmt Grp |
| American Express |
Sycamore Entmt and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sycamore Entmt and American Express
The main advantage of trading using opposite Sycamore Entmt and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sycamore Entmt 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.| Sycamore Entmt vs. Aftermaster | Sycamore Entmt vs. Lingerie Fighting Championships | Sycamore Entmt vs. WRIT Media Group | Sycamore Entmt vs. All For One |
| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. MSCI ACWI exAUCONSUMER | American Express vs. Sycamore Entmt Grp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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