Correlation Between American Funds and KENGEN PLC
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By analyzing existing cross correlation between American Funds Fundamental and KENGEN PLC, you can compare the effects of market volatilities on American Funds and KENGEN PLC 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 KENGEN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and KENGEN PLC.
Diversification Opportunities for American Funds and KENGEN PLC
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and KENGEN is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and KENGEN PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENGEN PLC 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 KENGEN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENGEN PLC has no effect on the direction of American Funds i.e., American Funds and KENGEN PLC go up and down completely randomly.
Pair Corralation between American Funds and KENGEN PLC
Assuming the 90 days horizon American Funds is expected to generate 2.9 times less return on investment than KENGEN PLC. But when comparing it to its historical volatility, American Funds Fundamental is 2.37 times less risky than KENGEN PLC. It trades about 0.2 of its potential returns per unit of risk. KENGEN PLC is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 375.00 in KENGEN PLC on November 3, 2024 and sell it today you would earn a total of 46.00 from holding KENGEN PLC or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Funds Fundamental vs. KENGEN PLC
Performance |
| Timeline |
| American Funds Funda |
| KENGEN PLC |
American Funds and KENGEN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and KENGEN PLC
The main advantage of trading using opposite American Funds and KENGEN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, KENGEN PLC 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 KENGEN PLC will offset losses from the drop in KENGEN PLC'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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