Correlation Between Atac Inflation and American Funds
Can any of the company-specific risk be diversified away by investing in both Atac Inflation and American Funds 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 Atac Inflation and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and American Funds Global, you can compare the effects of market volatilities on Atac Inflation and American Funds 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 Atac Inflation with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and American Funds.
Diversification Opportunities for Atac Inflation and American Funds
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atac and American is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and American Funds Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Global and Atac Inflation 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 Atac Inflation Rotation are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Global has no effect on the direction of Atac Inflation i.e., Atac Inflation and American Funds go up and down completely randomly.
Pair Corralation between Atac Inflation and American Funds
Assuming the 90 days horizon Atac Inflation Rotation is expected to generate 1.56 times more return on investment than American Funds. However, Atac Inflation is 1.56 times more volatile than American Funds Global. It trades about 0.07 of its potential returns per unit of risk. American Funds Global is currently generating about 0.1 per unit of risk. If you would invest 2,674 in Atac Inflation Rotation on September 12, 2024 and sell it today you would earn a total of 796.00 from holding Atac Inflation Rotation or generate 29.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atac Inflation Rotation vs. American Funds Global
Performance |
| Timeline |
| Atac Inflation Rotation |
| American Funds Global |
Atac Inflation and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and American Funds
The main advantage of trading using opposite Atac Inflation and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Atac Inflation vs. SCOR PK | Atac Inflation vs. Morningstar Unconstrained Allocation | Atac Inflation vs. Via Renewables | Atac Inflation vs. Bondbloxx ETF Trust |
| American Funds vs. Guidepath Managed Futures | American Funds vs. Atac Inflation Rotation | American Funds vs. Ab Bond Inflation | American Funds vs. Short Duration Inflation |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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