Correlation Between American Mutual and Us Global
Can any of the company-specific risk be diversified away by investing in both American Mutual and Us Global 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 Us Global 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 Us Global Investors, you can compare the effects of market volatilities on American Mutual and Us Global 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 Us Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Us Global.
Diversification Opportunities for American Mutual and Us Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and USLUX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Us Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Global Investors 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 Us Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Global Investors has no effect on the direction of American Mutual i.e., American Mutual and Us Global go up and down completely randomly.
Pair Corralation between American Mutual and Us Global
Assuming the 90 days horizon American Mutual Fund is expected to generate 0.78 times more return on investment than Us Global. However, American Mutual Fund is 1.29 times less risky than Us Global. It trades about 0.28 of its potential returns per unit of risk. Us Global Investors is currently generating about 0.18 per unit of risk. If you would invest 5,848 in American Mutual Fund on September 2, 2024 and sell it today you would earn a total of 211.00 from holding American Mutual Fund or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Us Global Investors
Performance |
| Timeline |
| American Mutual |
| Us Global Investors |
American Mutual and Us Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Us Global
The main advantage of trading using opposite American Mutual and Us Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Us Global 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 Us Global will offset losses from the drop in Us Global's long position.| American Mutual vs. Federated Institutional High | American Mutual vs. Multi Manager High Yield | American Mutual vs. Mesirow Financial High | American Mutual vs. Pioneer High Yield |
| Us Global vs. International Paper | Us Global vs. O I Glass | Us Global vs. Smurfit WestRock plc | Us Global vs. Driven Brands Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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