Correlation Between SYSCO and American Express
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By analyzing existing cross correlation between SYSCO P 485 and American Express, you can compare the effects of market volatilities on SYSCO 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 SYSCO with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of SYSCO and American Express.
Diversification Opportunities for SYSCO and American Express
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SYSCO and American is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SYSCO P 485 and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and SYSCO 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 SYSCO P 485 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 SYSCO i.e., SYSCO and American Express go up and down completely randomly.
Pair Corralation between SYSCO and American Express
Assuming the 90 days trading horizon SYSCO P 485 is expected to under-perform the American Express. But the bond apears to be less risky and, when comparing its historical volatility, SYSCO P 485 is 1.05 times less risky than American Express. The bond trades about -0.07 of its potential returns per unit of risk. The American Express is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 23,556 in American Express on September 1, 2024 and sell it today you would earn a total of 6,912 from holding American Express or generate 29.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.76% |
| Values | Daily Returns |
SYSCO P 485 vs. American Express
Performance |
| Timeline |
| SYSCO P 485 |
| American Express |
SYSCO and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SYSCO and American Express
The main advantage of trading using opposite SYSCO and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SYSCO 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 SYSCO P 485 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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