Correlation Between American Funds and Tower Bersama
Can any of the company-specific risk be diversified away by investing in both American Funds and Tower Bersama 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 Tower Bersama 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 Tower Bersama Infrastructure, you can compare the effects of market volatilities on American Funds and Tower Bersama 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 Tower Bersama. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Tower Bersama.
Diversification Opportunities for American Funds and Tower Bersama
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Tower is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Tower Bersama Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Bersama Infras 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 Tower Bersama. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Bersama Infras has no effect on the direction of American Funds i.e., American Funds and Tower Bersama go up and down completely randomly.
Pair Corralation between American Funds and Tower Bersama
Assuming the 90 days horizon American Funds Fundamental is expected to generate 0.81 times more return on investment than Tower Bersama. However, American Funds Fundamental is 1.24 times less risky than Tower Bersama. It trades about 0.2 of its potential returns per unit of risk. Tower Bersama Infrastructure is currently generating about -0.06 per unit of risk. If you would invest 8,096 in American Funds Fundamental on November 3, 2024 and sell it today you would earn a total of 322.00 from holding American Funds Fundamental or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
American Funds Fundamental vs. Tower Bersama Infrastructure
Performance |
| Timeline |
| American Funds Funda |
| Tower Bersama Infras |
American Funds and Tower Bersama Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Tower Bersama
The main advantage of trading using opposite American Funds and Tower Bersama positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Tower Bersama 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 Tower Bersama will offset losses from the drop in Tower Bersama'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 |
| Tower Bersama vs. PT Sarana Menara | Tower Bersama vs. XL Axiata Tbk | Tower Bersama vs. Merdeka Copper Gold | Tower Bersama vs. Surya Citra Media |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |