Correlation Between Blink Charging and American Express

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

Diversification Opportunities for Blink Charging and American Express

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Blink and American is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Blink Charging Co and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Blink Charging 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 Blink Charging Co 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 Blink Charging i.e., Blink Charging and American Express go up and down completely randomly.

Pair Corralation between Blink Charging and American Express

Given the investment horizon of 90 days Blink Charging is expected to generate 200.0 times less return on investment than American Express. In addition to that, Blink Charging is 2.82 times more volatile than American Express. It trades about 0.0 of its total potential returns per unit of risk. American Express is currently generating about 0.04 per unit of volatility. If you would invest  11,612  in American Express on September 7, 2022 and sell it today you would earn a total of  3,996  from holding American Express or generate 34.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Blink Charging Co  vs.  American Express

 Performance (%) 
       Timeline  
Blink Charging 
Blink Performance
0 of 100
Over the last 90 days Blink Charging Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2023. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Blink Price Channel

American Express 
American Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, American Express is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.

American Price Channel

Blink Charging and American Express Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blink Charging and American Express

The main advantage of trading using opposite Blink Charging and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blink Charging 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.
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The idea behind Blink Charging Co 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.
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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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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