Correlation Between American Funds and Green Century
Can any of the company-specific risk be diversified away by investing in both American Funds and Green Century 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 Green Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds The and Green Century Equity, you can compare the effects of market volatilities on American Funds and Green Century 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 Green Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Green Century.
Diversification Opportunities for American Funds and Green Century
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between American and Green is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Funds The and Green Century Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Century Equity 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 The are associated (or correlated) with Green Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Century Equity has no effect on the direction of American Funds i.e., American Funds and Green Century go up and down completely randomly.
Pair Corralation between American Funds and Green Century
Assuming the 90 days horizon American Funds The is expected to under-perform the Green Century. In addition to that, American Funds is 1.13 times more volatile than Green Century Equity. It trades about -0.1 of its total potential returns per unit of risk. Green Century Equity is currently generating about -0.07 per unit of volatility. If you would invest 8,186 in Green Century Equity on February 7, 2024 and sell it today you would lose (142.00) from holding Green Century Equity or give up 1.73% 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 The vs. Green Century Equity
Performance |
Timeline |
American Funds |
Green Century Equity |
American Funds and Green Century Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Funds and Green Century
The main advantage of trading using opposite American Funds and Green Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Green Century 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 Green Century will offset losses from the drop in Green Century's long position.American Funds vs. Europacific Growth Fund | American Funds vs. Capital World Growth | American Funds vs. American Funds Fundamental | American Funds vs. Washington Mutual Investors |
Green Century vs. Green Century Balanced | Green Century vs. Portfolio 21 Global | Green Century vs. New Alternatives Fund | Green Century vs. Pax Esg Beta |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Transaction History View history of all your transactions and understand their impact on performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |