Correlation Between DOGS and American Express
Can any of the company-specific risk be diversified away by investing in both DOGS 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 DOGS and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DOGS and American Express, you can compare the effects of market volatilities on DOGS 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 DOGS with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of DOGS and American Express.
Diversification Opportunities for DOGS and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DOGS and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DOGS and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and DOGS 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 DOGS 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 DOGS i.e., DOGS and American Express go up and down completely randomly.
Pair Corralation between DOGS and American Express
If you would invest 22,705 in American Express on January 27, 2024 and sell it today you would earn a total of 1,005 from holding American Express or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
DOGS vs. American Express
Performance |
| Timeline |
| DOGS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Express |
DOGS and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DOGS and American Express
The main advantage of trading using opposite DOGS and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DOGS 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.| DOGS vs. Goldman Sachs ActiveBeta | DOGS vs. Hartford Multifactor Equity | DOGS vs. Hartford Multifactor Emerging | DOGS vs. John Hancock Multifactor |
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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 Positions Ratings module to 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.
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