Correlation Between Ancora/thelen Small-mid and American Funds

Can any of the company-specific risk be diversified away by investing in both Ancora/thelen Small-mid and American Funds 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 Ancora/thelen Small-mid and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ancorathelen Small Mid Cap and American Funds The, you can compare the effects of market volatilities on Ancora/thelen Small-mid and American Funds 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 Ancora/thelen Small-mid with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancora/thelen Small-mid and American Funds.

Diversification Opportunities for Ancora/thelen Small-mid and American Funds

0.89

Correlation Coefficient

Ancora/thelen Small-mid  American Funds

Very poor diversification

The 3 months correlation between Ancora/thelen and American is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ancorathelen Small Mid Cap and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds and Ancora/thelen Small-mid 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 Ancorathelen Small Mid Cap are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Ancora/thelen Small-mid i.e., Ancora/thelen Small-mid and American Funds go up and down completely randomly.

Pair Corralation between Ancora/thelen Small-mid and American Funds

Assuming the 90 days horizon Ancorathelen Small Mid Cap is expected to generate 1.2 times more return on investment than American Funds. However, Ancora/thelen Small-mid is 1.2 times more volatile than American Funds The. It trades about 0.22 of its potential returns per unit of risk. American Funds The is currently generating about 0.24 per unit of risk. If you would invest  1,962  in Ancorathelen Small Mid Cap on September 5, 2024 and sell it today you would earn a total of  297.00  from holding Ancorathelen Small Mid Cap or generate 15.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Ancorathelen Small Mid Cap  vs.  American Funds The

Ancora/thelen Small-mid

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ancorathelen Small Mid Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ancora/thelen Small-mid showed solid returns over the last few months and may actually be approaching a breakup point.

American Funds

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds The are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, American Funds showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ancora/thelen Small-mid and American Funds

The main advantage of trading using opposite Ancora/thelen Small-mid and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancora/thelen Small-mid position performs unexpectedly, American Funds 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 Funds will offset losses from the drop in American Funds' long position.

The idea behind Ancorathelen Small Mid Cap and American Funds The pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.