Correlation Between American Funds and Oxford Technology
Can any of the company-specific risk be diversified away by investing in both American Funds and Oxford Technology 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 Oxford Technology 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 Oxford Technology 2, you can compare the effects of market volatilities on American Funds and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Oxford Technology.
Diversification Opportunities for American Funds and Oxford Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Oxford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of American Funds i.e., American Funds and Oxford Technology go up and down completely randomly.
Pair Corralation between American Funds and Oxford Technology
If you would invest 8,194 in American Funds Fundamental on October 23, 2024 and sell it today you would earn a total of 144.00 from holding American Funds Fundamental or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Fundamental vs. Oxford Technology 2
Performance |
| Timeline |
| American Funds Funda |
| Oxford Technology |
American Funds and Oxford Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Oxford Technology
The main advantage of trading using opposite American Funds and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology'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 |
| Oxford Technology vs. UNIQA Insurance Group | Oxford Technology vs. Zoom Video Communications | Oxford Technology vs. Moneta Money Bank | Oxford Technology vs. Discover Financial Services |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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