Correlation Between American Manganese and Valic Company
Can any of the company-specific risk be diversified away by investing in both American Manganese and Valic Company 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 Manganese and Valic Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Manganese and Valic Company I, you can compare the effects of market volatilities on American Manganese and Valic Company 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 Manganese with a short position of Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Manganese and Valic Company.
Diversification Opportunities for American Manganese and Valic Company
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Valic is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding American Manganese and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I and American Manganese 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 Manganese are associated (or correlated) with Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of American Manganese i.e., American Manganese and Valic Company go up and down completely randomly.
Pair Corralation between American Manganese and Valic Company
Assuming the 90 days horizon American Manganese is expected to under-perform the Valic Company. In addition to that, American Manganese is 14.23 times more volatile than Valic Company I. It trades about -0.01 of its total potential returns per unit of risk. Valic Company I is currently generating about 0.1 per unit of volatility. If you would invest 1,362 in Valic Company I on August 23, 2024 and sell it today you would earn a total of 86.00 from holding Valic Company I or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
American Manganese vs. Valic Company I
Performance |
| Timeline |
| American Manganese |
| Valic Company I |
American Manganese and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Manganese and Valic Company
The main advantage of trading using opposite American Manganese and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Manganese position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.| American Manganese vs. Mundoro Capital | American Manganese vs. Norra Metals Corp | American Manganese vs. E79 Resources Corp | American Manganese vs. Lithium Australia NL |
| Valic Company vs. ABIVAX Socit Anonyme | Valic Company vs. SCOR PK | Valic Company vs. HUMANA INC | Valic Company vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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