Correlation Between Liberty Financial and American Express
Can any of the company-specific risk be diversified away by investing in both Liberty Financial 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 Liberty Financial and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liberty Financial Group and American Express, you can compare the effects of market volatilities on Liberty Financial 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 Liberty Financial with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liberty Financial and American Express.
Diversification Opportunities for Liberty Financial and American Express
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Liberty and American is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Liberty Financial Group and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and Liberty Financial 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 Liberty Financial Group 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 Liberty Financial i.e., Liberty Financial and American Express go up and down completely randomly.
Pair Corralation between Liberty Financial and American Express
Assuming the 90 days trading horizon Liberty Financial is expected to generate 11.24 times less return on investment than American Express. In addition to that, Liberty Financial is 1.24 times more volatile than American Express. It trades about 0.01 of its total potential returns per unit of risk. American Express is currently generating about 0.14 per unit of volatility. If you would invest 32,459 in American Express on September 6, 2025 and sell it today you would earn a total of 4,656 from holding American Express or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Liberty Financial Group vs. American Express
Performance |
| Timeline |
| Liberty Financial |
| American Express |
Liberty Financial and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liberty Financial and American Express
The main advantage of trading using opposite Liberty Financial and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liberty Financial 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.| Liberty Financial vs. Ras Technology Holdings | Liberty Financial vs. Bank of Queensland | Liberty Financial vs. Ainsworth Game Technology | Liberty Financial vs. QBE Insurance Group |
| American Express vs. Konoike Transport CoLtd | American Express vs. Newron Sport | American Express vs. Logansport Financial Corp | American Express vs. Fortress Transportation and |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |