Correlation Between American Funds and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both American Funds and Hussman Strategic 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 Hussman Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Global and Hussman Strategic Growth, you can compare the effects of market volatilities on American Funds and Hussman Strategic 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 Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Hussman Strategic.
Diversification Opportunities for American Funds and Hussman Strategic
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Hussman is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Global and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Growth 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 Global are associated (or correlated) with Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of American Funds i.e., American Funds and Hussman Strategic go up and down completely randomly.
Pair Corralation between American Funds and Hussman Strategic
Assuming the 90 days horizon American Funds Global is expected to generate 1.31 times more return on investment than Hussman Strategic. However, American Funds is 1.31 times more volatile than Hussman Strategic Growth. It trades about 0.11 of its potential returns per unit of risk. Hussman Strategic Growth is currently generating about -0.06 per unit of risk. If you would invest 1,925 in American Funds Global on September 14, 2024 and sell it today you would earn a total of 505.00 from holding American Funds Global or generate 26.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Global vs. Hussman Strategic Growth
Performance |
| Timeline |
| American Funds Global |
| Hussman Strategic Growth |
American Funds and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Hussman Strategic
The main advantage of trading using opposite American Funds and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Hussman Strategic 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| American Funds vs. Blackrock Lifepath Dynamic | American Funds vs. Income Fund Of | American Funds vs. Sp 500 Index | American Funds vs. Dodge Cox Stock |
| Hussman Strategic vs. Hussman Strategic Allocation | Hussman Strategic vs. Hussman Strategic Dividend | Hussman Strategic vs. Hussman Strategic Total | Hussman Strategic vs. American Funds Global |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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