Correlation Between 552953CD1 and American Express
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By analyzing existing cross correlation between MGM Resorts International and American Express, you can compare the effects of market volatilities on 552953CD1 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 552953CD1 with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of 552953CD1 and American Express.
Diversification Opportunities for 552953CD1 and American Express
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 552953CD1 and American is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding MGM Resorts International and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and 552953CD1 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 MGM Resorts International 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 552953CD1 i.e., 552953CD1 and American Express go up and down completely randomly.
Pair Corralation between 552953CD1 and American Express
Assuming the 90 days trading horizon MGM Resorts International is expected to generate 29.01 times more return on investment than American Express. However, 552953CD1 is 29.01 times more volatile than American Express. It trades about 0.04 of its potential returns per unit of risk. American Express is currently generating about 0.1 per unit of risk. If you would invest 9,295 in MGM Resorts International on August 30, 2024 and sell it today you would earn a total of 239.00 from holding MGM Resorts International or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.57% |
| Values | Daily Returns |
MGM Resorts International vs. American Express
Performance |
| Timeline |
| MGM Resorts International |
| American Express |
552953CD1 and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 552953CD1 and American Express
The main advantage of trading using opposite 552953CD1 and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 552953CD1 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.| 552953CD1 vs. AEP TEX INC | 552953CD1 vs. US BANK NATIONAL | 552953CD1 vs. Nasdaq Inc | 552953CD1 vs. Vertiv Holdings Co |
| American Express vs. Visa Class A | American Express vs. Mastercard | American Express vs. Discover Financial Services |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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