Correlation Between American Funds and Dana Large
Can any of the company-specific risk be diversified away by investing in both American Funds and Dana Large 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 Dana Large 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 Dana Large Cap, you can compare the effects of market volatilities on American Funds and Dana Large 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 Dana Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Dana Large.
Diversification Opportunities for American Funds and Dana Large
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Dana is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Dana Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Large Cap 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 Dana Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Large Cap has no effect on the direction of American Funds i.e., American Funds and Dana Large go up and down completely randomly.
Pair Corralation between American Funds and Dana Large
If you would invest 7,653 in American Funds Fundamental on November 3, 2024 and sell it today you would earn a total of 765.00 from holding American Funds Fundamental or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Funds Fundamental vs. Dana Large Cap
Performance |
| Timeline |
| American Funds Funda |
| Dana Large Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Funds and Dana Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Dana Large
The main advantage of trading using opposite American Funds and Dana Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Dana Large 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 Dana Large will offset losses from the drop in Dana Large's long position.| American Funds vs. Federated Emerging Market | American Funds vs. Siit Emerging Markets | American Funds vs. Mid Cap 15x Strategy | American Funds vs. Ashmore Emerging Markets |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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