Correlation Between Washington Mutual and AMERICAN
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By analyzing existing cross correlation between Washington Mutual Investors and AMERICAN WTR CAP, you can compare the effects of market volatilities on Washington Mutual and AMERICAN 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 Washington Mutual with a short position of AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and AMERICAN.
Diversification Opportunities for Washington Mutual and AMERICAN
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Washington and AMERICAN is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and AMERICAN WTR CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN WTR CAP and Washington Mutual 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 Washington Mutual Investors are associated (or correlated) with AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN WTR CAP has no effect on the direction of Washington Mutual i.e., Washington Mutual and AMERICAN go up and down completely randomly.
Pair Corralation between Washington Mutual and AMERICAN
Assuming the 90 days horizon Washington Mutual Investors is expected to generate 2.47 times more return on investment than AMERICAN. However, Washington Mutual is 2.47 times more volatile than AMERICAN WTR CAP. It trades about 0.05 of its potential returns per unit of risk. AMERICAN WTR CAP is currently generating about -0.01 per unit of risk. If you would invest 5,822 in Washington Mutual Investors on November 4, 2024 and sell it today you would earn a total of 579.00 from holding Washington Mutual Investors or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
Washington Mutual Investors vs. AMERICAN WTR CAP
Performance |
| Timeline |
| Washington Mutual |
| AMERICAN WTR CAP |
Washington Mutual and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Mutual and AMERICAN
The main advantage of trading using opposite Washington Mutual and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual position performs unexpectedly, AMERICAN 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 will offset losses from the drop in AMERICAN's long position.| Washington Mutual vs. Neuberger Berman Real | Washington Mutual vs. Dunham Real Estate | Washington Mutual vs. Real Estate Ultrasector | Washington Mutual vs. Texton Property |
| AMERICAN vs. Deluxe | AMERICAN vs. Vasta Platform | AMERICAN vs. Royalty Management Holding | AMERICAN vs. Gfl Environmental Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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