Correlation Between American Funds and GreenTech Environmental
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By analyzing existing cross correlation between American Funds Fundamental and GreenTech Environmental Co, you can compare the effects of market volatilities on American Funds and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and GreenTech Environmental.
Diversification Opportunities for American Funds and GreenTech Environmental
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and GreenTech is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of American Funds i.e., American Funds and GreenTech Environmental go up and down completely randomly.
Pair Corralation between American Funds and GreenTech Environmental
Assuming the 90 days horizon American Funds Fundamental is expected to under-perform the GreenTech Environmental. But the mutual fund apears to be less risky and, when comparing its historical volatility, American Funds Fundamental is 2.69 times less risky than GreenTech Environmental. The mutual fund trades about -0.04 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,426 in GreenTech Environmental Co on January 4, 2025 and sell it today you would earn a total of 228.00 from holding GreenTech Environmental Co or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
American Funds Fundamental vs. GreenTech Environmental Co
Performance |
| Timeline |
| American Funds Funda |
| GreenTech Environmental |
American Funds and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and GreenTech Environmental
The main advantage of trading using opposite American Funds and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| American Funds vs. Income Fund Of | American Funds vs. New World Fund | American Funds vs. American Mutual Fund | American Funds vs. American Mutual Fund |
| GreenTech Environmental vs. Cansino Biologics | GreenTech Environmental vs. CICC Fund Management | GreenTech Environmental vs. Jiangsu Jinling Sports | GreenTech Environmental vs. Jiangsu Financial Leasing |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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