Correlation Between Amana Growth and Sextant International
Can any of the company-specific risk be diversified away by investing in both Amana Growth and Sextant International 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 Amana Growth and Sextant International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amana Growth Fund and Sextant International Fund, you can compare the effects of market volatilities on Amana Growth and Sextant International 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 Amana Growth with a short position of Sextant International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amana Growth and Sextant International.
Diversification Opportunities for Amana Growth and Sextant International
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Amana and Sextant is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Amana Growth Fund and Sextant International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sextant International and Amana Growth 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 Amana Growth Fund are associated (or correlated) with Sextant International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sextant International has no effect on the direction of Amana Growth i.e., Amana Growth and Sextant International go up and down completely randomly.
Pair Corralation between Amana Growth and Sextant International
Assuming the 90 days horizon Amana Growth Fund is expected to generate 1.0 times more return on investment than Sextant International. However, Amana Growth is 1.0 times more volatile than Sextant International Fund. It trades about 0.07 of its potential returns per unit of risk. Sextant International Fund is currently generating about 0.05 per unit of risk. If you would invest 5,786 in Amana Growth Fund on December 4, 2024 and sell it today you would earn a total of 2,084 from holding Amana Growth Fund or generate 36.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amana Growth Fund vs. Sextant International Fund
Performance |
Timeline |
Amana Growth |
Sextant International |
Amana Growth and Sextant International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amana Growth and Sextant International
The main advantage of trading using opposite Amana Growth and Sextant International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amana Growth position performs unexpectedly, Sextant International 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 Sextant International will offset losses from the drop in Sextant International's long position.Amana Growth vs. Prudential Financial Services | Amana Growth vs. Rmb Mendon Financial | Amana Growth vs. Rmb Mendon Financial | Amana Growth vs. Mesirow Financial Small |
Sextant International vs. Sextant Growth Fund | Sextant International vs. Amana Income Fund | Sextant International vs. Amana Growth Fund | Sextant International vs. Sextant Bond Income |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |