Correlation Between American Express and Global X

Can any of the company-specific risk be diversified away by investing in both American Express and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Express and Global X PropTech, you can compare the effects of market volatilities on American Express and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Global X.

Diversification Opportunities for American Express and Global X

0.67

Correlation Coefficient

American Express  Global X

Poor diversification

The 3 months correlation between American and Global is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Global X PropTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X PropTech 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X PropTech has no effect on the direction of American Express i.e., American Express and Global X go up and down completely randomly.

Pair Corralation between American Express and Global X

Considering the 90-day investment horizon American Express is expected to generate 1.47 times less return on investment than Global X. In addition to that, American Express is 1.5 times more volatile than Global X PropTech. It trades about 0.09 of its total potential returns per unit of risk. Global X PropTech is currently generating about 0.2 per unit of volatility. If you would invest  3,516  in Global X PropTech on May 7, 2025 and sell it today you would earn a total of  470.00  from holding Global X PropTech or generate 13.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

American Express  vs.  Global X PropTech

American Express

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, American Express may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Global X PropTech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X PropTech are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Global X exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Express and Global X

The main advantage of trading using opposite American Express and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.

The idea behind American Express and Global X PropTech 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.