Correlation Between American Funds and Seafarer Overseas
Can any of the company-specific risk be diversified away by investing in both American Funds and Seafarer Overseas 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 Seafarer Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds New and Seafarer Overseas Value, you can compare the effects of market volatilities on American Funds and Seafarer Overseas 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 Seafarer Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Seafarer Overseas.
Diversification Opportunities for American Funds and Seafarer Overseas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Seafarer is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding American Funds New and Seafarer Overseas Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafarer Overseas Value 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 New are associated (or correlated) with Seafarer Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafarer Overseas Value has no effect on the direction of American Funds i.e., American Funds and Seafarer Overseas go up and down completely randomly.
Pair Corralation between American Funds and Seafarer Overseas
Assuming the 90 days horizon American Funds New is expected to under-perform the Seafarer Overseas. In addition to that, American Funds is 1.08 times more volatile than Seafarer Overseas Value. It trades about -0.18 of its total potential returns per unit of risk. Seafarer Overseas Value is currently generating about -0.14 per unit of volatility. If you would invest 1,417 in Seafarer Overseas Value on August 31, 2024 and sell it today you would lose (27.00) from holding Seafarer Overseas Value or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds New vs. Seafarer Overseas Value
Performance |
| Timeline |
| American Funds New |
| Seafarer Overseas Value |
American Funds and Seafarer Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Seafarer Overseas
The main advantage of trading using opposite American Funds and Seafarer Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Seafarer Overseas 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 Seafarer Overseas will offset losses from the drop in Seafarer Overseas' long position.| American Funds vs. Vanguard Emerging Markets | American Funds vs. Vanguard Emerging Markets | American Funds vs. Vanguard Emerging Markets | American Funds vs. Vanguard Emerging Markets |
| Seafarer Overseas vs. Eventide Healthcare Life | Seafarer Overseas vs. Lord Abbett Health | Seafarer Overseas vs. Blackrock Health Sciences | Seafarer Overseas vs. Hartford Healthcare Hls |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |