Correlation Between American Funds and Greenspring Income
Can any of the company-specific risk be diversified away by investing in both American Funds and Greenspring Income 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 Greenspring Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds American and Greenspring Income Opportunities, you can compare the effects of market volatilities on American Funds and Greenspring Income 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 Greenspring Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Greenspring Income.
Diversification Opportunities for American Funds and Greenspring Income
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Greenspring is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding American Funds American and Greenspring Income Opportuniti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenspring Income 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 American are associated (or correlated) with Greenspring Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenspring Income has no effect on the direction of American Funds i.e., American Funds and Greenspring Income go up and down completely randomly.
Pair Corralation between American Funds and Greenspring Income
Assuming the 90 days horizon American Funds American is expected to generate 1.55 times more return on investment than Greenspring Income. However, American Funds is 1.55 times more volatile than Greenspring Income Opportunities. It trades about 0.19 of its potential returns per unit of risk. Greenspring Income Opportunities is currently generating about 0.18 per unit of risk. If you would invest 966.00 in American Funds American on September 2, 2024 and sell it today you would earn a total of 19.00 from holding American Funds American or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds American vs. Greenspring Income Opportuniti
Performance |
| Timeline |
| American Funds American |
| Greenspring Income |
American Funds and Greenspring Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Greenspring Income
The main advantage of trading using opposite American Funds and Greenspring Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Greenspring Income 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 Greenspring Income will offset losses from the drop in Greenspring Income's long position.| American Funds vs. Ab Bond Inflation | American Funds vs. Calamos Dynamic Convertible | American Funds vs. Versatile Bond Portfolio | American Funds vs. Ultra Short Fixed Income |
| Greenspring Income vs. Greenspring Fund Retail | Greenspring Income vs. Equity Growth Fund | Greenspring Income vs. Calamos Strategic Total | Greenspring Income vs. Ladenburg Growth |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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