Correlation Analysis Between American Funds and Europacific Growth

Analyzing existing cross correlation between American Funds EuroPacific Grow and Europacific Growth Fund Class 529-E Shares. You can compare the effects of market volatilities on American Funds and Europacific Growth 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 Funds with a short position of Europacific Growth. See also your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Europacific Growth.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

American Funds EuroP  
00

Risk-Adjusted Fund Performance

Over the last 30 days American Funds EuroPacific Grow has generated negative risk-adjusted returns adding no value to fund investors. Inspite fairly strong basic indicators, American Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Europacific Growth Fund  
77

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Europacific Growth Fund Class 529-E Shares are ranked lower than 7 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, Europacific Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

American Funds and Europacific Growth Volatility Contrast

 Predicted Return Density 
    
  Returns 

American Funds EuroPacific Gro  vs.  Europacific Growth Fund Class

 Performance (%) 
    
  Timeline 

Pair Volatility

Assuming 30 trading days horizon, American Funds is expected to generate 1.0 times less return on investment than Europacific Growth. In addition to that, American Funds is 1.05 times more volatile than Europacific Growth Fund Class 529-E Shares. It trades about 0.1 of its total potential returns per unit of risk. Europacific Growth Fund Class 529-E Shares is currently generating about 0.11 per unit of volatility. If you would invest  5,185  in Europacific Growth Fund Class 529-E Shares on December 23, 2019 and sell it today you would earn a total of  236.00  from holding Europacific Growth Fund Class 529-E Shares or generate 4.55% return on investment over 30 days.

Pair Corralation between American Funds and Europacific Growth

0.78
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for American Funds and Europacific Growth

American Funds EuroPacific Gro diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Funds EuroPacific Gro and Europacific Growth Fund Class in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Europacific Growth Fund and American Funds 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 Funds EuroPacific Grow are associated (or correlated) with Europacific Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europacific Growth Fund has no effect on the direction of American Funds i.e. American Funds and Europacific Growth go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.