Correlation Between American Funds and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both American Funds and Osterweis 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 Osterweis Strategic 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 Osterweis Strategic Investment, you can compare the effects of market volatilities on American Funds and Osterweis 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Osterweis Strategic.
Diversification Opportunities for American Funds and Osterweis Strategic
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and OSTERWEIS is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding American Funds American and Osterweis Strategic Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of American Funds i.e., American Funds and Osterweis Strategic go up and down completely randomly.
Pair Corralation between American Funds and Osterweis Strategic
Assuming the 90 days horizon American Funds American is expected to generate 1.33 times more return on investment than Osterweis Strategic. However, American Funds is 1.33 times more volatile than Osterweis Strategic Investment. It trades about 0.22 of its potential returns per unit of risk. Osterweis Strategic Investment is currently generating about 0.29 per unit of risk. If you would invest 3,438 in American Funds American on November 3, 2024 and sell it today you would earn a total of 96.00 from holding American Funds American or generate 2.79% 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. Osterweis Strategic Investment
Performance |
| Timeline |
| American Funds American |
| Osterweis Strategic |
American Funds and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Osterweis Strategic
The main advantage of trading using opposite American Funds and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Osterweis 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic's long position.| American Funds vs. American Funds American | American Funds vs. American Balanced | American Funds vs. American Balanced Fund | American Funds vs. American Balanced Fund |
| Osterweis Strategic vs. Mid Cap 15x Strategy | Osterweis Strategic vs. Angel Oak Multi Strategy | Osterweis Strategic vs. Artisan Developing World | Osterweis Strategic vs. Ashmore Emerging Markets |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets |