Correlation Between American Century and Avantis International
Can any of the company-specific risk be diversified away by investing in both American Century and Avantis International 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 Avantis International 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 Avantis International Equity, you can compare the effects of market volatilities on American Century and Avantis International 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 Avantis International. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and Avantis International.
Diversification Opportunities for American Century and Avantis International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Avantis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding American Century ETF and Avantis International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis International 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 Avantis International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis International has no effect on the direction of American Century i.e., American Century and Avantis International go up and down completely randomly.
Pair Corralation between American Century and Avantis International
Given the investment horizon of 90 days American Century ETF is expected to generate 1.31 times more return on investment than Avantis International. However, American Century is 1.31 times more volatile than Avantis International Equity. It trades about 0.31 of its potential returns per unit of risk. Avantis International Equity is currently generating about -0.07 per unit of risk. If you would invest 6,642 in American Century ETF on August 31, 2024 and sell it today you would earn a total of 451.00 from holding American Century ETF or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
American Century ETF vs. Avantis International Equity
Performance |
| Timeline |
| American Century ETF |
| Avantis International |
American Century and Avantis International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and Avantis International
The main advantage of trading using opposite American Century and Avantis International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century position performs unexpectedly, Avantis International 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 Avantis International will offset losses from the drop in Avantis International's long position.| American Century vs. Avantis Emerging Markets | American Century vs. Avantis Emerging Markets | American Century vs. Avantis Equity ETF | American Century vs. Avantis International Large |
| Avantis International vs. iShares ESG Aggregate | Avantis International vs. SPDR MSCI Emerging | Avantis International vs. Aquagold International | Avantis International vs. Thrivent High Yield |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| 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 | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |