Correlation Between American Express and ENQLN
Specify exactly 2 symbols:
By analyzing existing cross correlation between American Express and ENQLN 11625 01 NOV 27, you can compare the effects of market volatilities on American Express and ENQLN 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 ENQLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and ENQLN.
Diversification Opportunities for American Express and ENQLN
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and ENQLN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding American Express and ENQLN 11625 01 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENQLN 11625 01 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 ENQLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENQLN 11625 01 has no effect on the direction of American Express i.e., American Express and ENQLN go up and down completely randomly.
Pair Corralation between American Express and ENQLN
Considering the 90-day investment horizon American Express is expected to generate 1.89 times more return on investment than ENQLN. However, American Express is 1.89 times more volatile than ENQLN 11625 01 NOV 27. It trades about 0.18 of its potential returns per unit of risk. ENQLN 11625 01 NOV 27 is currently generating about -0.31 per unit of risk. If you would invest 25,449 in American Express on September 12, 2024 and sell it today you would earn a total of 4,797 from holding American Express or generate 18.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 50.0% |
Values | Daily Returns |
American Express vs. ENQLN 11625 01 NOV 27
Performance |
Timeline |
American Express |
ENQLN 11625 01 |
American Express and ENQLN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Express and ENQLN
The main advantage of trading using opposite American Express and ENQLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, ENQLN 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 ENQLN will offset losses from the drop in ENQLN's long position.American Express vs. Victory Integrity Smallmid Cap | American Express vs. Hilton Worldwide Holdings | American Express vs. NVIDIA | American Express vs. JPMorgan Chase Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Transaction History View history of all your transactions and understand their impact on performance | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |