Correlation Between American Balanced and I Chiun
Can any of the company-specific risk be diversified away by investing in both American Balanced and I Chiun 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 Balanced and I Chiun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Balanced and I Chiun Precision Industry, you can compare the effects of market volatilities on American Balanced and I Chiun 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 Balanced with a short position of I Chiun. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and I Chiun.
Diversification Opportunities for American Balanced and I Chiun
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and 2486 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and I Chiun Precision Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Chiun Precision and American Balanced 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 Balanced are associated (or correlated) with I Chiun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Chiun Precision has no effect on the direction of American Balanced i.e., American Balanced and I Chiun go up and down completely randomly.
Pair Corralation between American Balanced and I Chiun
Assuming the 90 days horizon American Balanced is expected to generate 5.91 times less return on investment than I Chiun. But when comparing it to its historical volatility, American Balanced is 6.78 times less risky than I Chiun. It trades about 0.11 of its potential returns per unit of risk. I Chiun Precision Industry is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,900 in I Chiun Precision Industry on October 24, 2024 and sell it today you would earn a total of 5,400 from holding I Chiun Precision Industry or generate 110.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.37% |
| Values | Daily Returns |
American Balanced vs. I Chiun Precision Industry
Performance |
| Timeline |
| American Balanced |
| I Chiun Precision |
American Balanced and I Chiun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and I Chiun
The main advantage of trading using opposite American Balanced and I Chiun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, I Chiun 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 I Chiun will offset losses from the drop in I Chiun's long position.| American Balanced vs. Income Fund Of | American Balanced vs. Capital Income Builder | American Balanced vs. Capital World Growth | American Balanced vs. Growth Fund Of |
| I Chiun vs. Everlight Electronics Co | I Chiun vs. Tyntek Corp | I Chiun vs. Optotech Corp | I Chiun vs. Bright Led Electronics |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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