Correlation Between American Express and UBS
Can any of the company-specific risk be diversified away by investing in both American Express and UBS 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 American Express and UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and UBS, you can compare the effects of market volatilities on American Express and UBS 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 American Express with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and UBS.
Diversification Opportunities for American Express and UBS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS and American Express 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 American Express are associated (or correlated) with UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of American Express i.e., American Express and UBS go up and down completely randomly.
Pair Corralation between American Express and UBS
If you would invest (100.00) in UBS on December 2, 2024 and sell it today you would earn a total of 100.00 from holding UBS or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
American Express vs. UBS
Performance |
Timeline |
American Express |
UBS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
American Express and UBS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Express and UBS
The main advantage of trading using opposite American Express and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |