Correlation Between Cboe UK and American Express
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By analyzing existing cross correlation between Cboe UK Consumer and American Express Co, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and American Express.
Diversification Opportunities for Cboe UK and American Express
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cboe and American is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and American Express go up and down completely randomly.
Pair Corralation between Cboe UK and American Express
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.69 times more return on investment than American Express. However, Cboe UK Consumer is 1.45 times less risky than American Express. It trades about 0.19 of its potential returns per unit of risk. American Express Co is currently generating about 0.13 per unit of risk. If you would invest 2,867,072 in Cboe UK Consumer on September 23, 2024 and sell it today you would earn a total of 348,574 from holding Cboe UK Consumer or generate 12.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cboe UK Consumer vs. American Express Co
Performance |
Timeline |
Cboe UK and American Express Volatility Contrast
Predicted Return Density |
Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
American Express Co
Pair trading matchups for American Express
Pair Trading with Cboe UK and American Express
The main advantage of trading using opposite Cboe UK and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.Cboe UK vs. Fulcrum Metals PLC | Cboe UK vs. European Metals Holdings | Cboe UK vs. METALL ZUG AG | Cboe UK vs. Ebro Foods |
American Express vs. Uniper SE | American Express vs. Mulberry Group PLC | American Express vs. London Security Plc | American Express vs. Triad Group PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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