Correlation Between Qs Growth and American Mutual
Can any of the company-specific risk be diversified away by investing in both Qs Growth and American Mutual 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 Qs Growth and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Growth Fund and American Mutual Fund, you can compare the effects of market volatilities on Qs Growth and American Mutual 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 Qs Growth with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Growth and American Mutual.
Diversification Opportunities for Qs Growth and American Mutual
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SCHAX and American is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Qs Growth Fund and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Qs Growth 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 Qs Growth Fund are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Qs Growth i.e., Qs Growth and American Mutual go up and down completely randomly.
Pair Corralation between Qs Growth and American Mutual
Assuming the 90 days horizon Qs Growth Fund is expected to generate 1.15 times more return on investment than American Mutual. However, Qs Growth is 1.15 times more volatile than American Mutual Fund. It trades about 0.07 of its potential returns per unit of risk. American Mutual Fund is currently generating about 0.08 per unit of risk. If you would invest 1,468 in Qs Growth Fund on September 3, 2024 and sell it today you would earn a total of 414.00 from holding Qs Growth Fund or generate 28.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Growth Fund vs. American Mutual Fund
Performance |
| Timeline |
| Qs Growth Fund |
| American Mutual |
Qs Growth and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Growth and American Mutual
The main advantage of trading using opposite Qs Growth and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Growth position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Qs Growth vs. Fidelity Series 1000 | Qs Growth vs. Americafirst Large Cap | Qs Growth vs. Dana Large Cap | Qs Growth vs. Fundamental Large Cap |
| American Mutual vs. Amcap Fund Class | American Mutual vs. American Balanced Fund | American Mutual vs. New Perspective Fund | American Mutual vs. New World 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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