Correlation Between American Funds and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both American Funds and Stryve Foods 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 Stryve Foods 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 Stryve Foods, you can compare the effects of market volatilities on American Funds and Stryve Foods 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 Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Stryve Foods.
Diversification Opportunities for American Funds and Stryve Foods
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Stryve is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods 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 Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of American Funds i.e., American Funds and Stryve Foods go up and down completely randomly.
Pair Corralation between American Funds and Stryve Foods
Assuming the 90 days horizon American Funds is expected to generate 10.24 times less return on investment than Stryve Foods. But when comparing it to its historical volatility, American Funds Fundamental is 28.04 times less risky than Stryve Foods. It trades about 0.2 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.67 in Stryve Foods on November 3, 2024 and sell it today you would lose (0.17) from holding Stryve Foods or give up 25.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
American Funds Fundamental vs. Stryve Foods
Performance |
| Timeline |
| American Funds Funda |
| Stryve Foods |
American Funds and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Stryve Foods
The main advantage of trading using opposite American Funds and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' 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 |
| Stryve Foods vs. Stryve Foods | Stryve Foods vs. Talkspace | Stryve Foods vs. AEye Inc | Stryve Foods vs. Microvast Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |