Correlation Between American Mutual and Grandeur Peak
Can any of the company-specific risk be diversified away by investing in both American Mutual and Grandeur Peak 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 Grandeur Peak 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 Grandeur Peak International, you can compare the effects of market volatilities on American Mutual and Grandeur Peak 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 Grandeur Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Grandeur Peak.
Diversification Opportunities for American Mutual and Grandeur Peak
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Grandeur is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Grandeur Peak International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandeur Peak Intern 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 Grandeur Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandeur Peak Intern has no effect on the direction of American Mutual i.e., American Mutual and Grandeur Peak go up and down completely randomly.
Pair Corralation between American Mutual and Grandeur Peak
Assuming the 90 days horizon American Mutual Fund is expected to generate 0.71 times more return on investment than Grandeur Peak. However, American Mutual Fund is 1.4 times less risky than Grandeur Peak. It trades about 0.27 of its potential returns per unit of risk. Grandeur Peak International is currently generating about -0.06 per unit of risk. If you would invest 5,821 in American Mutual Fund on September 1, 2024 and sell it today you would earn a total of 203.00 from holding American Mutual Fund or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Mutual Fund vs. Grandeur Peak International
Performance |
| Timeline |
| American Mutual |
| Grandeur Peak Intern |
American Mutual and Grandeur Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Grandeur Peak
The main advantage of trading using opposite American Mutual and Grandeur Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Grandeur Peak 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 Grandeur Peak will offset losses from the drop in Grandeur Peak's long position.| American Mutual vs. Amcap Fund Class | American Mutual vs. American Balanced Fund | American Mutual vs. New Perspective Fund | American Mutual vs. New World Fund |
| Grandeur Peak vs. Grandeur Peak Stalwarts | Grandeur Peak vs. Grandeur Peak Global | Grandeur Peak vs. Grandeur Peak Emerging | Grandeur Peak vs. Grandeur Peak Emerging |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |