Correlation Between American Express and BLACK
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By analyzing existing cross correlation between American Express and BLACK HILLS P, you can compare the effects of market volatilities on American Express and BLACK 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 BLACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and BLACK.
Diversification Opportunities for American Express and BLACK
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and BLACK is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding American Express and BLACK HILLS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACK HILLS P 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 BLACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACK HILLS P has no effect on the direction of American Express i.e., American Express and BLACK go up and down completely randomly.
Pair Corralation between American Express and BLACK
Considering the 90-day investment horizon American Express is expected to generate 1.0 times more return on investment than BLACK. However, American Express is 1.0 times more volatile than BLACK HILLS P. It trades about 0.06 of its potential returns per unit of risk. BLACK HILLS P is currently generating about -0.06 per unit of risk. If you would invest 29,447 in American Express on October 7, 2024 and sell it today you would earn a total of 861.00 from holding American Express or generate 2.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 85.37% |
Values | Daily Returns |
American Express vs. BLACK HILLS P
Performance |
Timeline |
American Express |
BLACK HILLS P |
American Express and BLACK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Express and BLACK
The main advantage of trading using opposite American Express and BLACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, BLACK 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 BLACK will offset losses from the drop in BLACK's long position.American Express vs. World Acceptance | American Express vs. Enova International | American Express vs. Green Dot | American Express vs. Medallion Financial Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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