Correlation Between American Funds and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between American Funds Fundamental and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on American Funds and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and INTERNATIONAL ENERGY.
Diversification Opportunities for American Funds and INTERNATIONAL ENERGY
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and INTERNATIONAL is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of American Funds i.e., American Funds and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between American Funds and INTERNATIONAL ENERGY
Assuming the 90 days horizon American Funds is expected to generate 10.89 times less return on investment than INTERNATIONAL ENERGY. But when comparing it to its historical volatility, American Funds Fundamental is 5.44 times less risky than INTERNATIONAL ENERGY. It trades about 0.12 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 159.00 in INTERNATIONAL ENERGY INSURANCE on October 23, 2024 and sell it today you would earn a total of 31.00 from holding INTERNATIONAL ENERGY INSURANCE or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Fundamental vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| American Funds Funda |
| INTERNATIONAL ENERGY |
American Funds and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and INTERNATIONAL ENERGY
The main advantage of trading using opposite American Funds and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| American Funds vs. Small Pany Growth | American Funds vs. Needham Small Cap | American Funds vs. Praxis Small Cap | American Funds vs. Franklin Small Cap |
| INTERNATIONAL ENERGY vs. AIICO INSURANCE PLC | INTERNATIONAL ENERGY vs. AXAMANSARD INSURANCE PLC | INTERNATIONAL ENERGY vs. GOLDLINK INSURANCE PLC | INTERNATIONAL ENERGY vs. LIVINGTRUST MORTGAGE BANK |
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.
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