Correlation Between Falcon Focus and American Funds
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and American Funds Retirement, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and American Funds.
Diversification Opportunities for Falcon Focus and American Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and American Funds Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Retirement and Falcon Focus 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 Falcon Focus Scv 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 Retirement has no effect on the direction of Falcon Focus i.e., Falcon Focus and American Funds go up and down completely randomly.
Pair Corralation between Falcon Focus and American Funds
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 2.01 times more return on investment than American Funds. However, Falcon Focus is 2.01 times more volatile than American Funds Retirement. It trades about 0.09 of its potential returns per unit of risk. American Funds Retirement is currently generating about 0.1 per unit of risk. If you would invest 1,040 in Falcon Focus Scv on September 12, 2024 and sell it today you would earn a total of 275.00 from holding Falcon Focus Scv or generate 26.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Falcon Focus Scv vs. American Funds Retirement
Performance |
| Timeline |
| Falcon Focus Scv |
| American Funds Retirement |
Falcon Focus and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and American Funds
The main advantage of trading using opposite Falcon Focus and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. T Rowe Price | Falcon Focus vs. Fisher Large Cap | Falcon Focus vs. T Rowe Price | Falcon Focus vs. Morningstar Unconstrained Allocation |
| American Funds vs. Huber Capital Equity | American Funds vs. Qs Global Equity | American Funds vs. Artisan Select Equity | American Funds vs. Ab Fixed Income Shares |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |