Correlation Between American Express and Golden Bull
Can any of the company-specific risk be diversified away by investing in both American Express and Golden Bull 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 Golden Bull into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Golden Bull Limited, you can compare the effects of market volatilities on American Express and Golden Bull 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 Golden Bull. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Golden Bull.
Diversification Opportunities for American Express and Golden Bull
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Golden Bull Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bull Limited 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 Golden Bull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bull Limited has no effect on the direction of American Express i.e., American Express and Golden Bull go up and down completely randomly.
Pair Corralation between American Express and Golden Bull
If you would invest 22,841 in American Express on January 21, 2024 and sell it today you would earn a total of 263.00 from holding American Express or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. Golden Bull Limited
Performance |
| Timeline |
| American Express |
| Golden Bull Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Golden Bull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Golden Bull
The main advantage of trading using opposite American Express and Golden Bull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Golden Bull 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 Golden Bull will offset losses from the drop in Golden Bull's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Mastercard |
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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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