Correlation Between Intrum AB and American Express
Can any of the company-specific risk be diversified away by investing in both Intrum AB 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 Intrum AB and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intrum AB and American Express, you can compare the effects of market volatilities on Intrum AB 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 Intrum AB with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intrum AB and American Express.
Diversification Opportunities for Intrum AB and American Express
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intrum and American is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intrum AB and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Intrum AB 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 Intrum AB 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 Intrum AB i.e., Intrum AB and American Express go up and down completely randomly.
Pair Corralation between Intrum AB and American Express
Assuming the 90 days trading horizon Intrum AB is expected to generate 1.53 times more return on investment than American Express. However, Intrum AB is 1.53 times more volatile than American Express. It trades about 0.23 of its potential returns per unit of risk. American Express is currently generating about -0.03 per unit of risk. If you would invest 4,630 in Intrum AB on July 15, 2025 and sell it today you would earn a total of 451.00 from holding Intrum AB or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intrum AB vs. American Express
Performance |
| Timeline |
| Intrum AB |
| American Express |
Intrum AB and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intrum AB and American Express
The main advantage of trading using opposite Intrum AB and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intrum AB 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.| Intrum AB vs. Samsung Electronics Co | Intrum AB vs. Samsung Electronics Co | Intrum AB vs. Samsung Electronics Co | Intrum AB vs. Toyota Motor Corp |
| American Express vs. Mastercard | American Express vs. Visa Class A | American Express vs. Capital One Financial | American Express vs. PayPal Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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