Correlation Between Counterpoint Tactical and American Growth
Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and American Growth 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 Counterpoint Tactical and American Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Counterpoint Tactical Municipal and American Growth Fund, you can compare the effects of market volatilities on Counterpoint Tactical and American Growth 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 Counterpoint Tactical with a short position of American Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and American Growth.
Diversification Opportunities for Counterpoint Tactical and American Growth
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Counterpoint and American is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Municipa and American Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Growth and Counterpoint Tactical 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 Counterpoint Tactical Municipal are associated (or correlated) with American Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Growth has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and American Growth go up and down completely randomly.
Pair Corralation between Counterpoint Tactical and American Growth
Assuming the 90 days horizon Counterpoint Tactical Municipal is expected to generate 0.06 times more return on investment than American Growth. However, Counterpoint Tactical Municipal is 17.72 times less risky than American Growth. It trades about 0.38 of its potential returns per unit of risk. American Growth Fund is currently generating about -0.18 per unit of risk. If you would invest 1,091 in Counterpoint Tactical Municipal on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Counterpoint Tactical Municipal or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Counterpoint Tactical Municipa vs. American Growth Fund
Performance |
| Timeline |
| Counterpoint Tactical |
| American Growth |
Counterpoint Tactical and American Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Counterpoint Tactical and American Growth
The main advantage of trading using opposite Counterpoint Tactical and American Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Counterpoint Tactical position performs unexpectedly, American Growth 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 Growth will offset losses from the drop in American Growth's long position.| Counterpoint Tactical vs. California High Yield Municipal | Counterpoint Tactical vs. Calvert High Yield | Counterpoint Tactical vs. Ab High Income | Counterpoint Tactical vs. Alliancebernstein Global High |
| American Growth vs. Lord Abbett Health | American Growth vs. Health Biotchnology Portfolio | American Growth vs. Highland Longshort Healthcare | American Growth vs. Alphacentric Lifesci Healthcare |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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