Correlation Between American Funds and KALRAY SA
Can any of the company-specific risk be diversified away by investing in both American Funds and KALRAY SA 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 Funds and KALRAY SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Fundamental and KALRAY SA EO, you can compare the effects of market volatilities on American Funds and KALRAY SA 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 Funds with a short position of KALRAY SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and KALRAY SA.
Diversification Opportunities for American Funds and KALRAY SA
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and KALRAY is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and KALRAY SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KALRAY SA EO and American Funds 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 Funds Fundamental are associated (or correlated) with KALRAY SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KALRAY SA EO has no effect on the direction of American Funds i.e., American Funds and KALRAY SA go up and down completely randomly.
Pair Corralation between American Funds and KALRAY SA
Assuming the 90 days horizon American Funds Fundamental is expected to generate 0.19 times more return on investment than KALRAY SA. However, American Funds Fundamental is 5.32 times less risky than KALRAY SA. It trades about 0.2 of its potential returns per unit of risk. KALRAY SA EO is currently generating about -0.32 per unit of risk. If you would invest 8,096 in American Funds Fundamental on November 3, 2024 and sell it today you would earn a total of 322.00 from holding American Funds Fundamental or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
American Funds Fundamental vs. KALRAY SA EO
Performance |
| Timeline |
| American Funds Funda |
| KALRAY SA EO |
American Funds and KALRAY SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and KALRAY SA
The main advantage of trading using opposite American Funds and KALRAY SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, KALRAY SA 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 KALRAY SA will offset losses from the drop in KALRAY SA's long position.| American Funds vs. World Energy Fund | American Funds vs. Energy Services Fund | American Funds vs. Alpsalerian Energy Infrastructure | American Funds vs. Icon Natural Resources |
| KALRAY SA vs. Laureate Education | KALRAY SA vs. TIANDE CHEMICAL | KALRAY SA vs. Soken Chemical Engineering | KALRAY SA vs. STRAYER EDUCATION |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |