Correlation Between American Express and Xiaobai Maimai
Can any of the company-specific risk be diversified away by investing in both American Express and Xiaobai Maimai 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 Xiaobai Maimai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Xiaobai Maimai, you can compare the effects of market volatilities on American Express and Xiaobai Maimai 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 Xiaobai Maimai. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Xiaobai Maimai.
Diversification Opportunities for American Express and Xiaobai Maimai
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Xiaobai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Xiaobai Maimai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiaobai Maimai 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 Xiaobai Maimai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiaobai Maimai has no effect on the direction of American Express i.e., American Express and Xiaobai Maimai go up and down completely randomly.
Pair Corralation between American Express and Xiaobai Maimai
If you would invest 16,979 in American Express on January 19, 2024 and sell it today you would earn a total of 4,771 from holding American Express or generate 28.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. Xiaobai Maimai
Performance |
| Timeline |
| American Express |
| Xiaobai Maimai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Xiaobai Maimai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Xiaobai Maimai
The main advantage of trading using opposite American Express and Xiaobai Maimai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Xiaobai Maimai 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 Xiaobai Maimai will offset losses from the drop in Xiaobai Maimai's long position.| American Express vs. Mersana Therapeutics | American Express vs. Amtech Systems | American Express vs. First United |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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