Correlation Between American Express and Rhinebeck Bancorp
Can any of the company-specific risk be diversified away by investing in both American Express and Rhinebeck Bancorp 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 Rhinebeck Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Rhinebeck Bancorp, you can compare the effects of market volatilities on American Express and Rhinebeck Bancorp 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 Rhinebeck Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Rhinebeck Bancorp.
Diversification Opportunities for American Express and Rhinebeck Bancorp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Rhinebeck is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Rhinebeck Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rhinebeck Bancorp 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 Rhinebeck Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rhinebeck Bancorp has no effect on the direction of American Express i.e., American Express and Rhinebeck Bancorp go up and down completely randomly.
Pair Corralation between American Express and Rhinebeck Bancorp
Considering the 90-day investment horizon American Express is expected to generate 0.74 times more return on investment than Rhinebeck Bancorp. However, American Express is 1.35 times less risky than Rhinebeck Bancorp. It trades about 0.14 of its potential returns per unit of risk. Rhinebeck Bancorp is currently generating about -0.15 per unit of risk. If you would invest 30,747 in American Express on July 24, 2025 and sell it today you would earn a total of 4,453 from holding American Express or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
American Express vs. Rhinebeck Bancorp
Performance |
| Timeline |
| American Express |
| Rhinebeck Bancorp |
American Express and Rhinebeck Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Rhinebeck Bancorp
The main advantage of trading using opposite American Express and Rhinebeck Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Rhinebeck Bancorp 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 Rhinebeck Bancorp will offset losses from the drop in Rhinebeck Bancorp's long position.| American Express vs. Mastercard | American Express vs. Visa Class A | American Express vs. Wells Fargo | American Express vs. Caterpillar |
| Rhinebeck Bancorp vs. First Guaranty Bancshares | Rhinebeck Bancorp vs. SB Financial Group | Rhinebeck Bancorp vs. Patriot National Bancorp | Rhinebeck Bancorp vs. Affinity Bancshares |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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