Correlation Between Exchange Traded and American Financial
Can any of the company-specific risk be diversified away by investing in both Exchange Traded and American Financial 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 Exchange Traded and American Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Traded Concepts and American Financial Group, you can compare the effects of market volatilities on Exchange Traded and American Financial 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 Exchange Traded with a short position of American Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and American Financial.
Diversification Opportunities for Exchange Traded and American Financial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exchange and American is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts and American Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Financial and Exchange Traded 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 Exchange Traded Concepts are associated (or correlated) with American Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Financial has no effect on the direction of Exchange Traded i.e., Exchange Traded and American Financial go up and down completely randomly.
Pair Corralation between Exchange Traded and American Financial
If you would invest 1,966 in American Financial Group on September 1, 2024 and sell it today you would earn a total of 13.00 from holding American Financial Group or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Exchange Traded Concepts vs. American Financial Group
Performance |
| Timeline |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Financial |
Exchange Traded and American Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Traded and American Financial
The main advantage of trading using opposite Exchange Traded and American Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Traded position performs unexpectedly, American Financial 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 Financial will offset losses from the drop in American Financial's long position.| Exchange Traded vs. iShares MSCI ACWI | Exchange Traded vs. iShares MSCI ACWI | Exchange Traded vs. iShares MSCI BIC | Exchange Traded vs. iShares MSCI EAFE |
| American Financial vs. American Financial Group | American Financial vs. American Financial Group | American Financial vs. American Financial Group | American Financial vs. Reinsurance Group of |
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.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |