Correlation Between American Express and A2Z SMART

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Can any of the company-specific risk be diversified away by investing in both American Express and A2Z SMART 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 American Express and A2Z SMART into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and A2Z SMART TECHNOLOGIES, you can compare the effects of market volatilities on American Express and A2Z SMART 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 A2Z SMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and A2Z SMART.

Diversification Opportunities for American Express and A2Z SMART

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between American and AAZZF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and A2Z SMART TECHNOLOGIES CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A2Z SMART TECHNOLOGIES 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 A2Z SMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A2Z SMART TECHNOLOGIES has no effect on the direction of American Express i.e., American Express and A2Z SMART go up and down completely randomly.

Pair Corralation between American Express and A2Z SMART

If you would invest  0.00  in A2Z SMART TECHNOLOGIES on June 27, 2022 and sell it today you would earn a total of  0.00  from holding A2Z SMART TECHNOLOGIES or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

American Express  vs.  A2Z SMART TECHNOLOGIES CORP

 Performance (%) 
       Timeline  
American Express 
American Performance
0 of 100
Over the last 90 days American Express has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, American Express is not utilizing all of its potentials. The new stock price disarray, may contribute to short-term losses for the insiders.

American Price Channel

A2Z SMART TECHNOLOGIES 
AAZZF Performance
0 of 100
Over the last 90 days A2Z SMART TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, A2Z SMART is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

American Express and A2Z SMART Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Express and A2Z SMART

The main advantage of trading using opposite American Express and A2Z SMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, A2Z SMART 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 A2Z SMART will offset losses from the drop in A2Z SMART's long position.
American Express vs. Sigma Lithium Corp
The idea behind American Express and A2Z SMART TECHNOLOGIES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against A2Z SMART as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. A2Z SMART's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, A2Z SMART's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to A2Z SMART TECHNOLOGIES.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

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