Correlation Between American Funds and Quantex Fund
Can any of the company-specific risk be diversified away by investing in both American Funds and Quantex Fund 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 Funds and Quantex Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Growth and Quantex Fund Retail, you can compare the effects of market volatilities on American Funds and Quantex Fund 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 Funds with a short position of Quantex Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Quantex Fund.
Diversification Opportunities for American Funds and Quantex Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Quantex is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth and Quantex Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantex Fund Retail and American Funds 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 Funds Growth are associated (or correlated) with Quantex Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantex Fund Retail has no effect on the direction of American Funds i.e., American Funds and Quantex Fund go up and down completely randomly.
Pair Corralation between American Funds and Quantex Fund
Assuming the 90 days horizon American Funds Growth is expected to generate 1.05 times more return on investment than Quantex Fund. However, American Funds is 1.05 times more volatile than Quantex Fund Retail. It trades about 0.15 of its potential returns per unit of risk. Quantex Fund Retail is currently generating about 0.14 per unit of risk. If you would invest 1,981 in American Funds Growth on September 4, 2024 and sell it today you would earn a total of 769.00 from holding American Funds Growth or generate 38.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
American Funds Growth vs. Quantex Fund Retail
Performance |
| Timeline |
| American Funds Growth |
| Quantex Fund Retail |
American Funds and Quantex Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Quantex Fund
The main advantage of trading using opposite American Funds and Quantex Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Quantex Fund 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 Quantex Fund will offset losses from the drop in Quantex Fund's long position.| American Funds vs. Income Fund Of | American Funds vs. New World Fund | American Funds vs. American Mutual Fund | American Funds vs. American Mutual Fund |
| Quantex Fund vs. Muirfield Fund Retail | Quantex Fund vs. Balanced Fund Retail | Quantex Fund vs. Infrastructure Fund Retail | Quantex Fund vs. Global Opportunities Fund |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| 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 |