Correlation Between American Express and Elevate Credit
Can any of the company-specific risk be diversified away by investing in both American Express and Elevate Credit 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 Elevate Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Elevate Credit, you can compare the effects of market volatilities on American Express and Elevate Credit 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 Elevate Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Elevate Credit.
Diversification Opportunities for American Express and Elevate Credit
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Elevate is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Elevate Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevate Credit 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 Elevate Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevate Credit has no effect on the direction of American Express i.e., American Express and Elevate Credit go up and down completely randomly.
Pair Corralation between American Express and Elevate Credit
If you would invest 22,721 in American Express on January 20, 2024 and sell it today you would earn a total of 383.00 from holding American Express or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
American Express vs. Elevate Credit
Performance |
| Timeline |
| American Express |
| Elevate Credit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Express and Elevate Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Elevate Credit
The main advantage of trading using opposite American Express and Elevate Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Elevate Credit 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 Elevate Credit will offset losses from the drop in Elevate Credit's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Mastercard |
| Elevate Credit vs. Jeld Wen Holding | Elevate Credit vs. Inflection Point Acquisition | Elevate Credit vs. Dream Finders HomesInc | Elevate Credit vs. Bluerock Homes Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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