Correlation Between American Century and EA Series
Can any of the company-specific risk be diversified away by investing in both American Century and EA Series 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 Century and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Century ETF and EA Series Trust, you can compare the effects of market volatilities on American Century and EA Series 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 Century with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and EA Series.
Diversification Opportunities for American Century and EA Series
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and DRAI is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding American Century ETF and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and American Century 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 Century ETF are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of American Century i.e., American Century and EA Series go up and down completely randomly.
Pair Corralation between American Century and EA Series
Given the investment horizon of 90 days American Century ETF is expected to generate 45.3 times more return on investment than EA Series. However, American Century is 45.3 times more volatile than EA Series Trust. It trades about 0.05 of its potential returns per unit of risk. EA Series Trust is currently generating about -0.02 per unit of risk. If you would invest 0.00 in American Century ETF on September 3, 2024 and sell it today you would earn a total of 6,516 from holding American Century ETF or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.25% |
| Values | Daily Returns |
American Century ETF vs. EA Series Trust
Performance |
| Timeline |
| American Century ETF |
| EA Series Trust |
American Century and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and EA Series
The main advantage of trading using opposite American Century and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| American Century vs. Freedom Day Dividend | American Century vs. iShares MSCI China | American Century vs. SmartETFs Dividend Builder | American Century vs. Tidal ETF Trust |
| EA Series vs. First Trust Multi Asset | EA Series vs. Collaborative Investment Series | EA Series vs. Ocean Park International | EA Series vs. Akros Monthly Payout |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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