Correlation Between 361 Global and First American
Can any of the company-specific risk be diversified away by investing in both 361 Global and First American 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 361 Global and First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and First American Funds, you can compare the effects of market volatilities on 361 Global and First American 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 361 Global with a short position of First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and First American.
Diversification Opportunities for 361 Global and First American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 361 and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and First American Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Funds and 361 Global 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 361 Global Longshort are associated (or correlated) with First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Funds has no effect on the direction of 361 Global i.e., 361 Global and First American go up and down completely randomly.
Pair Corralation between 361 Global and First American
If you would invest 100.00 in First American Funds on December 2, 2024 and sell it today you would earn a total of 0.00 from holding First American Funds or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
361 Global Longshort vs. First American Funds
Performance |
Timeline |
361 Global Longshort |
First American Funds |
361 Global and First American Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 361 Global and First American
The main advantage of trading using opposite 361 Global and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.361 Global vs. Ultrasmall Cap Profund Ultrasmall Cap | 361 Global vs. Inverse Mid Cap Strategy | 361 Global vs. Transamerica Financial Life | 361 Global vs. Boston Partners Small |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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