| AXP Stock | | | USD 301.30 8.30 2.83% |
American Express financial indicator trend analysis is way more than just evaluating American Express prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether American Express is a good investment. Please check the relationship between American Express Long Term Debt and its Net Invested Capital accounts. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in American Express. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in interest.
To learn how to invest in American Stock, please use our
How to Invest in American Express guide.
Long Term Debt vs Net Invested Capital
Long Term Debt vs Net Invested Capital Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
American Express Long Term Debt account and
Net Invested Capital. At this time, the significance of the direction appears to have very week relationship.
The correlation between American Express' Long Term Debt and Net Invested Capital is 0.29. Overlapping area represents the amount of variation of Long Term Debt that can explain the historical movement of Net Invested Capital in the same time period over historical financial statements of American Express, assuming nothing else is changed. The correlation between historical values of American Express' Long Term Debt and Net Invested Capital is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Long Term Debt of American Express are associated (or correlated) with its Net Invested Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Invested Capital has no effect on the direction of Long Term Debt i.e., American Express' Long Term Debt and Net Invested Capital go up and down completely randomly.
Correlation Coefficient | 0.29 |
| Relationship Direction | Positive |
| Relationship Strength | Very Weak |
Long Term Debt
Long-term debt is a debt that American Express has held for over one year. Long-term debt appears on American Express balance sheet and also includes long-term leases. The most common forms of long term debt are bonds payable, long-term notes payable, mortgage payable, pension liabilities, and lease liabilities. In the corporate world, long-term debt is generally used to fund big-ticket items, such as machinery, buildings, and land. The total of long-term debt reported on American Express balance sheet is the sum of the balances of all categories of long-term debt. Debt that is not due within the current year and is often considered to be financing activities that are to be repaid over several years.
Net Invested Capital
The total amount of capital invested in a company, including both equity and debt, minus any cash or cash equivalents.
Most indicators from American Express' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into American Express current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in American Express. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in interest.
To learn how to invest in American Stock, please use our
How to Invest in American Express guide.At this time, American Express'
Discontinued Operations is relatively stable compared to the past year. As of 11/25/2024,
Enterprise Value Over EBITDA is likely to grow to 14.47, while
Issuance Of Capital Stock is likely to drop slightly above 26.6
M.
American Express fundamental ratios Correlations
Click cells to compare fundamentals
American Express Account Relationship Matchups
High Positive Relationship
High Negative Relationship
American Express fundamental ratios Accounts
Pair Trading with American Express
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Express position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to American Express could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Express when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Express - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Express to buy it.
The correlation of American Express is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Express moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Express moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Express can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Additional Tools for American Stock Analysis
When running American Express' price analysis, check to
measure American Express' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Express is operating at the current time. Most of American Express' value examination focuses on studying past and present price action to
predict the probability of American Express' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Express' price. Additionally, you may evaluate how the addition of American Express to your portfolios can decrease your overall portfolio volatility.