Correlation Between American Funds and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both American Funds and Azimut Holding 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 Azimut Holding 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 Azimut Holding SpA, you can compare the effects of market volatilities on American Funds and Azimut Holding 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 Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Azimut Holding.
Diversification Opportunities for American Funds and Azimut Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Azimut is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA 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 Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of American Funds i.e., American Funds and Azimut Holding go up and down completely randomly.
Pair Corralation between American Funds and Azimut Holding
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 | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
American Funds Fundamental vs. Azimut Holding SpA
Performance |
| Timeline |
| American Funds Funda |
| Azimut Holding SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Funds and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Azimut Holding
The main advantage of trading using opposite American Funds and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding'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 |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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