Correlation Between Volkswagen and American Express
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By analyzing existing cross correlation between Volkswagen AG and American Express, you can compare the effects of market volatilities on Volkswagen 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 Volkswagen with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volkswagen and American Express.
Diversification Opportunities for Volkswagen and American Express
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Volkswagen and American is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Volkswagen AG and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Volkswagen 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 Volkswagen AG 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 Volkswagen i.e., Volkswagen and American Express go up and down completely randomly.
Pair Corralation between Volkswagen and American Express
Assuming the 90 days trading horizon Volkswagen AG is expected to under-perform the American Express. But the stock apears to be less risky and, when comparing its historical volatility, Volkswagen AG is 1.07 times less risky than American Express. The stock trades about -0.03 of its potential returns per unit of risk. The American Express is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 14,439 in American Express on September 3, 2024 and sell it today you would earn a total of 14,576 from holding American Express or generate 100.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Volkswagen AG vs. American Express
Performance |
| Timeline |
| Volkswagen AG |
| American Express |
Volkswagen and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volkswagen and American Express
The main advantage of trading using opposite Volkswagen and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volkswagen 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.| Volkswagen vs. ARDAGH METAL PACDL 0001 | Volkswagen vs. GREENX METALS LTD | Volkswagen vs. Aluminum of | Volkswagen vs. Lion One Metals |
| American Express vs. CVR Medical Corp | American Express vs. UNIVMUSIC GRPADR050 | American Express vs. MeVis Medical Solutions | American Express vs. Apollo Medical Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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