Correlation Between Americafirst Monthly and Sa Real

Can any of the company-specific risk be diversified away by investing in both Americafirst Monthly and Sa Real 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 Monthly and Sa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Americafirst Monthly Risk On and Sa Real Estate, you can compare the effects of market volatilities on Americafirst Monthly and Sa Real 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 Monthly with a short position of Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Monthly and Sa Real.

Diversification Opportunities for Americafirst Monthly and Sa Real

-0.14

Correlation Coefficient

Americafirst Monthly  Sa Real

Good diversification

The 3 months correlation between Americafirst and SAREX is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Monthly Risk On and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Real Estate and Americafirst Monthly 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 Monthly Risk On are associated (or correlated) with Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of Americafirst Monthly i.e., Americafirst Monthly and Sa Real go up and down completely randomly.

Pair Corralation between Americafirst Monthly and Sa Real

Assuming the 90 days horizon Americafirst Monthly Risk On is expected to generate 1.34 times more return on investment than Sa Real. However, Americafirst Monthly is 1.34 times more volatile than Sa Real Estate. It trades about 0.24 of its potential returns per unit of risk. Sa Real Estate is currently generating about 0.05 per unit of risk. If you would invest  1,257  in Americafirst Monthly Risk On on September 4, 2024 and sell it today you would earn a total of  233.00  from holding Americafirst Monthly Risk On or generate 18.54% return on investment over 90 days.

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

Americafirst Monthly Risk On  vs.  Sa Real Estate

Americafirst Monthly

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Americafirst Monthly Risk On are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Americafirst Monthly showed solid returns over the last few months and may actually be approaching a breakup point.

Sa Real Estate

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sa Real Estate are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Sa Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Americafirst Monthly and Sa Real

The main advantage of trading using opposite Americafirst Monthly and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Monthly position performs unexpectedly, Sa Real 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 Sa Real will offset losses from the drop in Sa Real's long position.

The idea behind Americafirst Monthly Risk On and Sa Real Estate 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.