Correlation Between Stocksplus and Americafirst Large
Can any of the company-specific risk be diversified away by investing in both Stocksplus and Americafirst Large 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 Stocksplus and Americafirst Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stocksplus Tr Short and Americafirst Large Cap, you can compare the effects of market volatilities on Stocksplus and Americafirst Large 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 Stocksplus with a short position of Americafirst Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stocksplus and Americafirst Large.
Diversification Opportunities for Stocksplus and Americafirst Large
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stocksplus and Americafirst is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Stocksplus Tr Short and Americafirst Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Large Cap and Stocksplus 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 Stocksplus Tr Short are associated (or correlated) with Americafirst Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Large Cap has no effect on the direction of Stocksplus i.e., Stocksplus and Americafirst Large go up and down completely randomly.
Pair Corralation between Stocksplus and Americafirst Large
Assuming the 90 days horizon Stocksplus Tr Short is expected to under-perform the Americafirst Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Stocksplus Tr Short is 1.58 times less risky than Americafirst Large. The mutual fund trades about -0.28 of its potential returns per unit of risk. The Americafirst Large Cap is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,341 in Americafirst Large Cap on September 1, 2024 and sell it today you would earn a total of 126.00 from holding Americafirst Large Cap or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Stocksplus Tr Short vs. Americafirst Large Cap
Performance |
| Timeline |
| Stocksplus Tr Short |
| Americafirst Large Cap |
Stocksplus and Americafirst Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stocksplus and Americafirst Large
The main advantage of trading using opposite Stocksplus and Americafirst Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stocksplus position performs unexpectedly, Americafirst Large 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 Americafirst Large will offset losses from the drop in Americafirst Large's long position.| Stocksplus vs. Jhancock Disciplined Value | Stocksplus vs. Americafirst Large Cap | Stocksplus vs. Touchstone Large Cap | Stocksplus vs. Transamerica Large Cap |
| Americafirst Large vs. Americafirst Large Cap | Americafirst Large vs. Americafirst Monthly Risk On | Americafirst Large vs. Americafirst Tactical Alpha | Americafirst Large vs. Americafirst Income Fund |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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