Correlation Between American Express and 345370BN9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both American Express and 345370BN9 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 345370BN9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and FORD MTR DEL, you can compare the effects of market volatilities on American Express and 345370BN9 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 345370BN9. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and 345370BN9.

Diversification Opportunities for American Express and 345370BN9

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between American and 345370BN9 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and FORD MTR CO DEL 7.125% 15Nov20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORD MTR DEL 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 345370BN9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORD MTR DEL has no effect on the direction of American Express i.e., American Express and 345370BN9 go up and down completely randomly.

Pair Corralation between American Express and 345370BN9

If you would invest  17,311  in American Express on December 30, 2023 and sell it today you would earn a total of  5,458  from holding American Express or generate 31.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.2%
ValuesDaily Returns

American Express  vs.  FORD MTR CO DEL 7.125% 15Nov20

 Performance 
       Timeline  
American Express 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, American Express reported solid returns over the last few months and may actually be approaching a breakup point.
FORD MTR DEL 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days FORD MTR DEL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 345370BN9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

American Express and 345370BN9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Express and 345370BN9

The main advantage of trading using opposite American Express and 345370BN9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, 345370BN9 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 345370BN9 will offset losses from the drop in 345370BN9's long position.
The idea behind American Express and FORD MTR DEL 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.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
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