Correlation Between American Express and TAKEDA

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

Diversification Opportunities for American Express and TAKEDA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between American and TAKEDA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and TAKEDA PHARMACEUTICAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAKEDA PHARMACEUTICAL LTD 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 TAKEDA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAKEDA PHARMACEUTICAL LTD has no effect on the direction of American Express i.e., American Express and TAKEDA go up and down completely randomly.

Pair Corralation between American Express and TAKEDA

If you would invest  32,253  in American Express on September 10, 2025 and sell it today you would earn a total of  3,975  from holding American Express or generate 12.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

American Express  vs.  TAKEDA PHARMACEUTICAL LTD

 Performance 
       Timeline  
American Express 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in American Express are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, American Express may actually be approaching a critical reversion point that can send shares even higher in January 2026.
TAKEDA PHARMACEUTICAL LTD 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days TAKEDA PHARMACEUTICAL LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TAKEDA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

American Express and TAKEDA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Express and TAKEDA

The main advantage of trading using opposite American Express and TAKEDA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, TAKEDA 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 TAKEDA will offset losses from the drop in TAKEDA's long position.
The idea behind American Express and TAKEDA PHARMACEUTICAL LTD 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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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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