Correlation Between Resource America and American Express
Can any of the company-specific risk be diversified away by investing in both Resource America and American Express 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 Resource America and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resource America and American Express, you can compare the effects of market volatilities on Resource America and American Express 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 Resource America with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resource America and American Express.
Diversification Opportunities for Resource America and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Resource and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Resource America and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Resource America 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 Resource America are associated (or correlated) with American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Resource America i.e., Resource America and American Express go up and down completely randomly.
Pair Corralation between Resource America and American Express
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 Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Resource America vs. American Express
Performance |
Timeline |
Resource America |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
American Express |
Resource America and American Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Resource America and American Express
The main advantage of trading using opposite Resource America and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resource America position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.Resource America vs. Compania Cervecerias Unidas | Resource America vs. Vector Group | Resource America vs. Vita Coco | Resource America vs. Funko Inc |
American Express vs. Nisun International Enterprise | American Express vs. International Business Machines | American Express vs. McDonalds | American Express vs. Alcoa Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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