Correlation Between American Growth and Enhanced Fixed
Can any of the company-specific risk be diversified away by investing in both American Growth and Enhanced Fixed 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 Growth and Enhanced Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Growth Fund and Enhanced Fixed Income, you can compare the effects of market volatilities on American Growth and Enhanced Fixed 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 Growth with a short position of Enhanced Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Growth and Enhanced Fixed.
Diversification Opportunities for American Growth and Enhanced Fixed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Enhanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Growth Fund and Enhanced Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enhanced Fixed Income and American Growth 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 Growth Fund are associated (or correlated) with Enhanced Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enhanced Fixed Income has no effect on the direction of American Growth i.e., American Growth and Enhanced Fixed go up and down completely randomly.
Pair Corralation between American Growth and Enhanced Fixed
If you would invest (100.00) in American Growth Fund on October 10, 2024 and sell it today you would earn a total of 100.00 from holding American Growth Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Growth Fund vs. Enhanced Fixed Income
Performance |
| Timeline |
| American Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enhanced Fixed Income |
American Growth and Enhanced Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Growth and Enhanced Fixed
The main advantage of trading using opposite American Growth and Enhanced Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Growth position performs unexpectedly, Enhanced Fixed 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 Enhanced Fixed will offset losses from the drop in Enhanced Fixed's long position.| American Growth vs. American Growth Fund | American Growth vs. American Growth Fund | American Growth vs. American Growth Fund | American Growth vs. Prudential Jennison International |
| Enhanced Fixed vs. Franklin Lifesmart Retirement | Enhanced Fixed vs. Moderately Aggressive Balanced | Enhanced Fixed vs. Transamerica Cleartrack Retirement | Enhanced Fixed vs. Tiaa Cref Lifestyle Moderate |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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