Correlation Between US Commodity and American Express
Can any of the company-specific risk be diversified away by investing in both US Commodity 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 US Commodity and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Commodity Funds and American Express, you can compare the effects of market volatilities on US Commodity 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 US Commodity with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Commodity and American Express.
Diversification Opportunities for US Commodity and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USOU and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Commodity Funds and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and US Commodity 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 US Commodity Funds 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 US Commodity i.e., US Commodity and American Express go up and down completely randomly.
Pair Corralation between US Commodity and American Express
If you would invest 16,245 in American Express on January 26, 2024 and sell it today you would earn a total of 7,667 from holding American Express or generate 47.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Commodity Funds vs. American Express
Performance |
| Timeline |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Express |
US Commodity and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Commodity and American Express
The main advantage of trading using opposite US Commodity and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Commodity 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.| US Commodity vs. Zillow Group Class | US Commodity vs. Northern Lights | US Commodity vs. VanEck Vectors Moodys | US Commodity vs. BZDYF |
| American Express vs. Orix Corp Ads | American Express vs. FirstCash | American Express vs. Enova International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets |