Correlation Between American Mutual and Carillon Eagle
Can any of the company-specific risk be diversified away by investing in both American Mutual and Carillon Eagle 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 Mutual and Carillon Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Carillon Eagle Growth, you can compare the effects of market volatilities on American Mutual and Carillon Eagle 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 Mutual with a short position of Carillon Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Carillon Eagle.
Diversification Opportunities for American Mutual and Carillon Eagle
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Carillon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Carillon Eagle Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Eagle Growth and American Mutual 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 Mutual Fund are associated (or correlated) with Carillon Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carillon Eagle Growth has no effect on the direction of American Mutual i.e., American Mutual and Carillon Eagle go up and down completely randomly.
Pair Corralation between American Mutual and Carillon Eagle
If you would invest 2,242 in Carillon Eagle Growth on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Carillon Eagle Growth or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.67% |
Values | Daily Returns |
American Mutual Fund vs. Carillon Eagle Growth
Performance |
Timeline |
American Mutual |
Carillon Eagle Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Mutual and Carillon Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Mutual and Carillon Eagle
The main advantage of trading using opposite American Mutual and Carillon Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Carillon Eagle 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 Carillon Eagle will offset losses from the drop in Carillon Eagle's long position.American Mutual vs. Mesirow Financial Small | American Mutual vs. Financials Ultrasector Profund | American Mutual vs. Angel Oak Financial | American Mutual vs. Prudential Financial Services |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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