Correlation Between American Express and STRYKER
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By analyzing existing cross correlation between American Express and STRYKER P 3375, you can compare the effects of market volatilities on American Express and STRYKER 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 STRYKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and STRYKER.
Diversification Opportunities for American Express and STRYKER
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and STRYKER is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Express and STRYKER P 3375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRYKER P 3375 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 STRYKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRYKER P 3375 has no effect on the direction of American Express i.e., American Express and STRYKER go up and down completely randomly.
Pair Corralation between American Express and STRYKER
Considering the 90-day investment horizon American Express is expected to generate 5.61 times more return on investment than STRYKER. However, American Express is 5.61 times more volatile than STRYKER P 3375. It trades about 0.12 of its potential returns per unit of risk. STRYKER P 3375 is currently generating about -0.01 per unit of risk. If you would invest 24,666 in American Express on October 26, 2024 and sell it today you would earn a total of 6,981 from holding American Express or generate 28.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.77% |
Values | Daily Returns |
American Express vs. STRYKER P 3375
Performance |
Timeline |
American Express |
STRYKER P 3375 |
American Express and STRYKER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Express and STRYKER
The main advantage of trading using opposite American Express and STRYKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, STRYKER 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 STRYKER will offset losses from the drop in STRYKER'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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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