Correlation Between American Balanced and Gansu Yasheng
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By analyzing existing cross correlation between American Balanced and Gansu Yasheng Industrial, you can compare the effects of market volatilities on American Balanced and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Balanced and Gansu Yasheng.
Diversification Opportunities for American Balanced and Gansu Yasheng
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Gansu is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding American Balanced and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of American Balanced i.e., American Balanced and Gansu Yasheng go up and down completely randomly.
Pair Corralation between American Balanced and Gansu Yasheng
Assuming the 90 days horizon American Balanced is expected to generate 1.98 times less return on investment than Gansu Yasheng. But when comparing it to its historical volatility, American Balanced is 3.18 times less risky than Gansu Yasheng. It trades about 0.07 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 241.00 in Gansu Yasheng Industrial on November 3, 2024 and sell it today you would earn a total of 39.00 from holding Gansu Yasheng Industrial or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.14% |
| Values | Daily Returns |
American Balanced vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| American Balanced |
| Gansu Yasheng Industrial |
American Balanced and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Balanced and Gansu Yasheng
The main advantage of trading using opposite American Balanced and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Balanced position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng'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 |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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