Correlation Between 361 Global and American High
Can any of the company-specific risk be diversified away by investing in both 361 Global and American High 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 361 Global and American High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and American High Income, you can compare the effects of market volatilities on 361 Global and American High 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 361 Global with a short position of American High. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and American High.
Diversification Opportunities for 361 Global and American High
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 361 and American is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and American High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income and 361 Global 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 361 Global Longshort are associated (or correlated) with American High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of 361 Global i.e., 361 Global and American High go up and down completely randomly.
Pair Corralation between 361 Global and American High
Assuming the 90 days horizon 361 Global Longshort is expected to generate 2.17 times more return on investment than American High. However, 361 Global is 2.17 times more volatile than American High Income. It trades about 0.15 of its potential returns per unit of risk. American High Income is currently generating about 0.28 per unit of risk. If you would invest 1,205 in 361 Global Longshort on October 20, 2024 and sell it today you would earn a total of 19.00 from holding 361 Global Longshort or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
361 Global Longshort vs. American High Income
Performance |
| Timeline |
| 361 Global Longshort |
| American High Income |
361 Global and American High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and American High
The main advantage of trading using opposite 361 Global and American High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, American High 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 High will offset losses from the drop in American High's long position.| 361 Global vs. Delaware Emerging Markets | 361 Global vs. Dow 2x Strategy | 361 Global vs. Wcm Focused Emerging | 361 Global vs. Artisan Developing World |
| American High vs. Columbia Real Estate | American High vs. Redwood Real Estate | American High vs. Real Estate Ultrasector | American High vs. Baron Real Estate |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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