Correlation Between American Funds and Multi Asset
Can any of the company-specific risk be diversified away by investing in both American Funds and Multi Asset 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 Multi Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Inflation and Multi Asset Income Fund, you can compare the effects of market volatilities on American Funds and Multi Asset 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 Multi Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Multi Asset.
Diversification Opportunities for American Funds and Multi Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Multi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Inflation and Multi Asset Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Asset 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 Inflation are associated (or correlated) with Multi Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Asset Income has no effect on the direction of American Funds i.e., American Funds and Multi Asset go up and down completely randomly.
Pair Corralation between American Funds and Multi Asset
If you would invest 880.00 in American Funds Inflation on September 12, 2024 and sell it today you would earn a total of 64.00 from holding American Funds Inflation or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Funds Inflation vs. Multi Asset Income Fund
Performance |
| Timeline |
| American Funds Inflation |
| Multi Asset Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Funds and Multi Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Multi Asset
The main advantage of trading using opposite American Funds and Multi Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Multi Asset 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 Multi Asset will offset losses from the drop in Multi Asset's long position.| American Funds vs. Vanguard Inflation Protected Securities | American Funds vs. Vanguard Inflation Protected Securities | American Funds vs. American Funds Inflation |
| Multi Asset vs. Schwab Treasury Inflation | Multi Asset vs. American Funds Inflation | Multi Asset vs. Federated Hermes Inflation | Multi Asset vs. Deutsche Global Inflation |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |