Correlation Between American Mutual and American Funds
Can any of the company-specific risk be diversified away by investing in both American Mutual and American Funds 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 American Funds 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 American Funds 2020, you can compare the effects of market volatilities on American Mutual and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and American Funds.
Diversification Opportunities for American Mutual and American Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and American Funds 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2020 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2020 has no effect on the direction of American Mutual i.e., American Mutual and American Funds go up and down completely randomly.
Pair Corralation between American Mutual and American Funds
If you would invest 5,687 in American Mutual Fund on August 29, 2024 and sell it today you would earn a total of 223.00 from holding American Mutual Fund or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
American Mutual Fund vs. American Funds 2020
Performance |
| Timeline |
| American Mutual |
| American Funds 2020 |
American Mutual and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and American Funds
The main advantage of trading using opposite American Mutual and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, American Funds 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 Funds will offset losses from the drop in American Funds' long position.| American Mutual vs. Hartford Moderate Allocation | American Mutual vs. Alternative Asset Allocation | American Mutual vs. Dodge Cox Stock | American Mutual vs. Goldman Sachs Large |
| American Funds vs. Aqr Large Cap | American Funds vs. Enhanced Large Pany | American Funds vs. Pace Large Growth | American Funds vs. Touchstone Large Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |