Correlation Between Anfield Dynamic and American Express

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anfield Dynamic 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 Anfield Dynamic and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anfield Dynamic Fixed and American Express, you can compare the effects of market volatilities on Anfield Dynamic 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 Anfield Dynamic with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anfield Dynamic and American Express.

Diversification Opportunities for Anfield Dynamic and American Express

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Anfield and American is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anfield Dynamic Fixed and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Anfield Dynamic 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 Anfield Dynamic Fixed 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 Anfield Dynamic i.e., Anfield Dynamic and American Express go up and down completely randomly.

Pair Corralation between Anfield Dynamic and American Express

Given the investment horizon of 90 days Anfield Dynamic Fixed is expected to under-perform the American Express. But the etf apears to be less risky and, when comparing its historical volatility, Anfield Dynamic Fixed is 7.04 times less risky than American Express. The etf trades about -0.08 of its potential returns per unit of risk. The American Express is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  9,576  in American Express on May 12, 2022 and sell it today you would earn a total of  6,675  from holding American Express or generate 69.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Anfield Dynamic Fixed  vs.  American Express

 Performance (%) 
       Timeline  
Anfield Dynamic Fixed 
Anfield Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Dynamic Fixed are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Anfield Dynamic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Anfield Price Channel

American Express 
American Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, American Express may actually be approaching a critical reversion point that can send shares even higher in September 2022.

American Price Channel

Anfield Dynamic and American Express Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anfield Dynamic and American Express

The main advantage of trading using opposite Anfield Dynamic and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anfield Dynamic 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.

Anfield Dynamic Fixed

Pair trading matchups for Anfield Dynamic

The idea behind Anfield Dynamic Fixed and American Express 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.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go