Correlation Between American Funds and Acrisure
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By analyzing existing cross correlation between American Funds Fundamental and Acrisure LLC 144A, you can compare the effects of market volatilities on American Funds and Acrisure 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 Acrisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Acrisure.
Diversification Opportunities for American Funds and Acrisure
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Acrisure is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and Acrisure LLC 144A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrisure LLC 144A 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 Acrisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrisure LLC 144A has no effect on the direction of American Funds i.e., American Funds and Acrisure go up and down completely randomly.
Pair Corralation between American Funds and Acrisure
Assuming the 90 days horizon American Funds Fundamental is expected to generate 0.33 times more return on investment than Acrisure. However, American Funds Fundamental is 3.04 times less risky than Acrisure. It trades about 0.2 of its potential returns per unit of risk. Acrisure LLC 144A is currently generating about -0.09 per unit of risk. If you would invest 8,194 in American Funds Fundamental on October 24, 2024 and sell it today you would earn a total of 259.00 from holding American Funds Fundamental or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.78% |
| Values | Daily Returns |
American Funds Fundamental vs. Acrisure LLC 144A
Performance |
| Timeline |
| American Funds Funda |
| Acrisure LLC 144A |
American Funds and Acrisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Acrisure
The main advantage of trading using opposite American Funds and Acrisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Acrisure 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 Acrisure will offset losses from the drop in Acrisure's long position.| American Funds vs. Virtus High Yield | American Funds vs. Ab High Income | American Funds vs. Multi Manager High Yield | American Funds vs. Ab High Income |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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