Correlation Between American Mutual and Fundamental Indexplus
Can any of the company-specific risk be diversified away by investing in both American Mutual and Fundamental Indexplus 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 Mutual and Fundamental Indexplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Fundamental Indexplus Tr, you can compare the effects of market volatilities on American Mutual and Fundamental Indexplus 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 Mutual with a short position of Fundamental Indexplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Fundamental Indexplus.
Diversification Opportunities for American Mutual and Fundamental Indexplus
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Fundamental is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Fundamental Indexplus Tr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Indexplus and American Mutual 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 Mutual Fund are associated (or correlated) with Fundamental Indexplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Indexplus has no effect on the direction of American Mutual i.e., American Mutual and Fundamental Indexplus go up and down completely randomly.
Pair Corralation between American Mutual and Fundamental Indexplus
Assuming the 90 days horizon American Mutual is expected to generate 1.14 times less return on investment than Fundamental Indexplus. But when comparing it to its historical volatility, American Mutual Fund is 1.57 times less risky than Fundamental Indexplus. It trades about 0.09 of its potential returns per unit of risk. Fundamental Indexplus Tr is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,807 in Fundamental Indexplus Tr on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Fundamental Indexplus Tr or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Fundamental Indexplus Tr
Performance |
| Timeline |
| American Mutual |
| Fundamental Indexplus |
American Mutual and Fundamental Indexplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Fundamental Indexplus
The main advantage of trading using opposite American Mutual and Fundamental Indexplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Fundamental Indexplus 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 Fundamental Indexplus will offset losses from the drop in Fundamental Indexplus' long position.| American Mutual vs. Rbc Microcap Value | American Mutual vs. Falcon Focus Scv | American Mutual vs. Scharf Global Opportunity | American Mutual vs. Qs Large Cap |
| Fundamental Indexplus vs. Dodge Cox Stock | Fundamental Indexplus vs. American Mutual Fund | Fundamental Indexplus vs. American Funds American | Fundamental Indexplus vs. American Funds American |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |