Correlation Between G5 Entertainment and American Express
Can any of the company-specific risk be diversified away by investing in both G5 Entertainment and American Express at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining G5 Entertainment and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G5 Entertainment AB and American Express Co, you can compare the effects of market volatilities on G5 Entertainment 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 G5 Entertainment with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of G5 Entertainment and American Express.
Diversification Opportunities for G5 Entertainment and American Express
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0QUS and American is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding G5 Entertainment AB and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and G5 Entertainment 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 G5 Entertainment AB 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 G5 Entertainment i.e., G5 Entertainment and American Express go up and down completely randomly.
Pair Corralation between G5 Entertainment and American Express
Assuming the 90 days trading horizon G5 Entertainment AB is expected to generate 1.6 times more return on investment than American Express. However, G5 Entertainment is 1.6 times more volatile than American Express Co. It trades about 0.19 of its potential returns per unit of risk. American Express Co is currently generating about -0.11 per unit of risk. If you would invest 9,900 in G5 Entertainment AB on September 25, 2024 and sell it today you would earn a total of 800.00 from holding G5 Entertainment AB or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
G5 Entertainment AB vs. American Express Co
Performance |
Timeline |
G5 Entertainment |
American Express |
G5 Entertainment and American Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G5 Entertainment and American Express
The main advantage of trading using opposite G5 Entertainment and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G5 Entertainment 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.G5 Entertainment vs. Uniper SE | G5 Entertainment vs. Mulberry Group PLC | G5 Entertainment vs. London Security Plc | G5 Entertainment vs. Triad Group PLC |
American Express vs. Prosiebensat 1 Media | American Express vs. G5 Entertainment AB | American Express vs. Live Nation Entertainment | American Express vs. Foresight Environmental Infrastructure |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Global Correlations Find global opportunities by holding instruments from different markets |