Correlation Between Americafirst Large and High Yield
Can any of the company-specific risk be diversified away by investing in both Americafirst Large and High Yield 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 Americafirst Large and High Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and High Yield Fund, you can compare the effects of market volatilities on Americafirst Large and High Yield 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 Americafirst Large with a short position of High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and High Yield.
Diversification Opportunities for Americafirst Large and High Yield
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Americafirst and High is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund and Americafirst Large 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 Americafirst Large Cap are associated (or correlated) with High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of Americafirst Large i.e., Americafirst Large and High Yield go up and down completely randomly.
Pair Corralation between Americafirst Large and High Yield
Assuming the 90 days horizon Americafirst Large Cap is expected to generate 3.23 times more return on investment than High Yield. However, Americafirst Large is 3.23 times more volatile than High Yield Fund. It trades about 0.0 of its potential returns per unit of risk. High Yield Fund is currently generating about -0.03 per unit of risk. If you would invest 1,433 in Americafirst Large Cap on September 15, 2024 and sell it today you would lose (1.00) from holding Americafirst Large Cap or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. High Yield Fund
Performance |
| Timeline |
| Americafirst Large Cap |
| High Yield Fund |
Americafirst Large and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and High Yield
The main advantage of trading using opposite Americafirst Large and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Americafirst Large vs. Prudential Government Money | Americafirst Large vs. Elfun Government Money | Americafirst Large vs. Schwab Treasury Money | Americafirst Large vs. Money Market Obligations |
| High Yield vs. Invesco Energy Fund | High Yield vs. Goehring Rozencwajg Resources | High Yield vs. Franklin Natural Resources | High Yield vs. World Energy 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |