Correlation Between Champlain Small and American Funds
Can any of the company-specific risk be diversified away by investing in both Champlain Small and American Funds 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 Champlain Small and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and American Funds 2030, you can compare the effects of market volatilities on Champlain Small and American Funds 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 Champlain Small with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and American Funds.
Diversification Opportunities for Champlain Small and American Funds
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Champlain and American is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and American Funds 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2030 and Champlain Small 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 Champlain Small are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2030 has no effect on the direction of Champlain Small i.e., Champlain Small and American Funds go up and down completely randomly.
Pair Corralation between Champlain Small and American Funds
Assuming the 90 days horizon Champlain Small is expected to generate 4.02 times more return on investment than American Funds. However, Champlain Small is 4.02 times more volatile than American Funds 2030. It trades about 0.31 of its potential returns per unit of risk. American Funds 2030 is currently generating about 0.29 per unit of risk. If you would invest 2,311 in Champlain Small on September 2, 2024 and sell it today you would earn a total of 241.00 from holding Champlain Small or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. American Funds 2030
Performance |
| Timeline |
| Champlain Small |
| American Funds 2030 |
Champlain Small and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and American Funds
The main advantage of trading using opposite Champlain Small and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, American Funds 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 Funds will offset losses from the drop in American Funds' long position.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| American Funds vs. Franklin High Yield | American Funds vs. Bbh Intermediate Municipal | American Funds vs. Federated Ohio Municipal | American Funds vs. Alliancebernstein National Municipal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |