Correlation Between American Express and Jacob Asset
Can any of the company-specific risk be diversified away by investing in both American Express and Jacob Asset 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 Jacob Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Jacob Asset Management, you can compare the effects of market volatilities on American Express and Jacob Asset 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 Jacob Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Jacob Asset.
Diversification Opportunities for American Express and Jacob Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Jacob is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Jacob Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Asset Management 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 Jacob Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Asset Management has no effect on the direction of American Express i.e., American Express and Jacob Asset go up and down completely randomly.
Pair Corralation between American Express and Jacob Asset
If you would invest (100.00) in Jacob Asset Management on December 5, 2024 and sell it today you would earn a total of 100.00 from holding Jacob Asset Management 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. Jacob Asset Management
Performance |
Timeline |
American Express |
Jacob Asset Management |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
American Express and Jacob Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Express and Jacob Asset
The main advantage of trading using opposite American Express and Jacob Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Jacob Asset 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 Jacob Asset will offset losses from the drop in Jacob Asset'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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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