Correlation Between Boston Partners and American Mutual
Can any of the company-specific risk be diversified away by investing in both Boston Partners and American Mutual 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 Boston Partners and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and American Mutual Fund, you can compare the effects of market volatilities on Boston Partners and American Mutual 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 Boston Partners with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and American Mutual.
Diversification Opportunities for Boston Partners and American Mutual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Boston Partners i.e., Boston Partners and American Mutual go up and down completely randomly.
Pair Corralation between Boston Partners and American Mutual
If you would invest (100.00) in American Mutual Fund on September 14, 2024 and sell it today you would earn a total of 100.00 from holding American Mutual Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boston Partners Longshort vs. American Mutual Fund
Performance |
| Timeline |
| Boston Partners Longshort |
| American Mutual |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Partners and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and American Mutual
The main advantage of trading using opposite Boston Partners and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, American Mutual 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 Mutual will offset losses from the drop in American Mutual's long position.| Boston Partners vs. Blackrock Midcap Index | Boston Partners vs. The Arbitrage Fund | Boston Partners vs. Calamos Market Neutral | Boston Partners vs. Diamond Hill Long Short |
| American Mutual vs. Franklin Federal Limited Term | American Mutual vs. Boston Partners Longshort | American Mutual vs. Prudential Short Duration | American Mutual vs. Virtus Multi Sector Short |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |