Correlation Between American Mutual and Intel
Can any of the company-specific risk be diversified away by investing in both American Mutual and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on American Mutual and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Intel.
Diversification Opportunities for American Mutual and Intel
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Intel is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of American Mutual i.e., American Mutual and Intel go up and down completely randomly.
Pair Corralation between American Mutual and Intel
Assuming the 90 days horizon American Mutual Fund is expected to generate 0.2 times more return on investment than Intel. However, American Mutual Fund is 5.1 times less risky than Intel. It trades about -0.06 of its potential returns per unit of risk. Intel is currently generating about -0.19 per unit of risk. If you would invest 5,181 in American Mutual Fund on January 24, 2024 and sell it today you would lose (66.00) from holding American Mutual Fund or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
American Mutual Fund vs. Intel
Performance |
| Timeline |
| American Mutual |
| Intel |
American Mutual and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Intel
The main advantage of trading using opposite American Mutual and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| American Mutual vs. American Funds Fundamental | American Mutual vs. Amcap Fund Class | American Mutual vs. New Perspective Fund | American Mutual vs. American Balanced Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |