Correlation Between 88579YBG5 and American Express
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By analyzing existing cross correlation between 3M MTN and American Express, you can compare the effects of market volatilities on 88579YBG5 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 88579YBG5 with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of 88579YBG5 and American Express.
Diversification Opportunities for 88579YBG5 and American Express
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 88579YBG5 and American is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding 3M MTN and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and 88579YBG5 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 3M MTN 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 88579YBG5 i.e., 88579YBG5 and American Express go up and down completely randomly.
Pair Corralation between 88579YBG5 and American Express
Assuming the 90 days trading horizon 3M MTN is expected to under-perform the American Express. But the bond apears to be less risky and, when comparing its historical volatility, 3M MTN is 2.77 times less risky than American Express. The bond trades about -0.02 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 | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
3M MTN vs. American Express
Performance |
| Timeline |
| 88579YBG5 |
| American Express |
88579YBG5 and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 88579YBG5 and American Express
The main advantage of trading using opposite 88579YBG5 and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 88579YBG5 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.| 88579YBG5 vs. AEP TEX INC | 88579YBG5 vs. US BANK NATIONAL | 88579YBG5 vs. Bank of America | 88579YBG5 vs. GE Aerospace |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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