Correlation Between Dreamworks Animation and American Express
Can any of the company-specific risk be diversified away by investing in both Dreamworks Animation and American Express 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 Dreamworks Animation and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreamworks Animation Skg and American Express, you can compare the effects of market volatilities on Dreamworks Animation 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 Dreamworks Animation with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreamworks Animation and American Express.
Diversification Opportunities for Dreamworks Animation and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreamworks and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dreamworks Animation Skg and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Dreamworks Animation 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 Dreamworks Animation Skg 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 Dreamworks Animation i.e., Dreamworks Animation and American Express go up and down completely randomly.
Pair Corralation between Dreamworks Animation and American Express
If you would invest 18,674 in American Express on December 29, 2023 and sell it today you would earn a total of 4,095 from holding American Express or generate 21.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.61% |
Values | Daily Returns |
Dreamworks Animation Skg vs. American Express
Performance |
Timeline |
Dreamworks Animation Skg |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
American Express |
Dreamworks Animation and American Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreamworks Animation and American Express
The main advantage of trading using opposite Dreamworks Animation and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreamworks Animation 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.Dreamworks Animation vs. CDW Corp | Dreamworks Animation vs. Great Elm Capital | Dreamworks Animation vs. Silvercrest Asset Management | Dreamworks Animation vs. MYT Netherlands Parent |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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