Correlation Between SU Plc and American Express
Can any of the company-specific risk be diversified away by investing in both SU Plc 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 SU Plc and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SU plc and American Express, you can compare the effects of market volatilities on SU Plc 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 SU Plc with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of SU Plc and American Express.
Diversification Opportunities for SU Plc and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUS and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SU plc and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and SU Plc 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 SU plc 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 SU Plc i.e., SU Plc and American Express go up and down completely randomly.
Pair Corralation between SU Plc and American Express
If you would invest 29,779 in American Express on August 16, 2025 and sell it today you would earn a total of 6,080 from holding American Express or generate 20.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
SU plc vs. American Express
Performance |
| Timeline |
| SU plc |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| American Express |
SU Plc and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SU Plc and American Express
The main advantage of trading using opposite SU Plc and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SU Plc 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.| SU Plc vs. GlobalData PLC | SU Plc vs. Infrastrutture Wireless Italiane | SU Plc vs. Fonix Mobile plc | SU Plc vs. Fidelity National Information |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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