Correlation Between MARKEL and American Express
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By analyzing existing cross correlation between MARKEL P 43 and American Express, you can compare the effects of market volatilities on MARKEL 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 MARKEL with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKEL and American Express.
Diversification Opportunities for MARKEL and American Express
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MARKEL and American is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding MARKEL P 43 and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and MARKEL 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 MARKEL P 43 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 MARKEL i.e., MARKEL and American Express go up and down completely randomly.
Pair Corralation between MARKEL and American Express
Assuming the 90 days trading horizon MARKEL is expected to generate 1.3 times less return on investment than American Express. But when comparing it to its historical volatility, MARKEL P 43 is 1.78 times less risky than American Express. It trades about 0.42 of its potential returns per unit of risk. American Express is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 27,008 in American Express on September 1, 2024 and sell it today you would earn a total of 3,460 from holding American Express or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
MARKEL P 43 vs. American Express
Performance |
| Timeline |
| MARKEL P 43 |
| American Express |
MARKEL and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARKEL and American Express
The main advantage of trading using opposite MARKEL and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKEL 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 MARKEL P 43 and American Express 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.| American Express vs. 360 Finance | American Express vs. Atlanticus Holdings | American Express vs. Qudian Inc | American Express vs. Enova International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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