Correlation Between Wisdomtree Siegel and American Mutual
Can any of the company-specific risk be diversified away by investing in both Wisdomtree Siegel 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 Wisdomtree Siegel and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisdomtree Siegel Global and American Mutual Fund, you can compare the effects of market volatilities on Wisdomtree Siegel 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 Wisdomtree Siegel with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisdomtree Siegel and American Mutual.
Diversification Opportunities for Wisdomtree Siegel and American Mutual
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wisdomtree and American is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Wisdomtree Siegel Global and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Wisdomtree Siegel 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 Wisdomtree Siegel Global 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 Wisdomtree Siegel i.e., Wisdomtree Siegel and American Mutual go up and down completely randomly.
Pair Corralation between Wisdomtree Siegel and American Mutual
Assuming the 90 days horizon Wisdomtree Siegel is expected to generate 1.04 times less return on investment than American Mutual. But when comparing it to its historical volatility, Wisdomtree Siegel Global is 1.07 times less risky than American Mutual. It trades about 0.09 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,684 in American Mutual Fund on September 2, 2024 and sell it today you would earn a total of 1,374 from holding American Mutual Fund or generate 29.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 6.05% |
| Values | Daily Returns |
Wisdomtree Siegel Global vs. American Mutual Fund
Performance |
| Timeline |
| Wisdomtree Siegel Global |
| American Mutual |
Wisdomtree Siegel and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisdomtree Siegel and American Mutual
The main advantage of trading using opposite Wisdomtree Siegel and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisdomtree Siegel 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.| Wisdomtree Siegel vs. Vanguard Total Stock | Wisdomtree Siegel vs. Vanguard 500 Index | Wisdomtree Siegel vs. Vanguard Total Stock | Wisdomtree Siegel vs. Vanguard Total Stock |
| American Mutual vs. California Bond Fund | American Mutual vs. Bbh Intermediate Municipal | American Mutual vs. Ultra Short Fixed Income | American Mutual vs. Ambrus Core Bond |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| 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 | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |