Correlation Analysis Between American Funds and Growth Fund

This module allows you to analyze existing cross correlation between American Funds New Economy Fund and The Growth Fund Of America Clas. You can compare the effects of market volatilities on American Funds and Growth Fund 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 Growth Fund. See also your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Growth Fund.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

American Funds New  
44

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Funds New Economy Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 30 days. 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.
Growth Fund  
55

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in The Growth Fund Of America Clas are ranked lower than 5 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, Growth Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

American Funds and Growth Fund Volatility Contrast

 Predicted Return Density 
      Returns 

American Funds New Economy Fun  vs.  The Growth Fund Of America Cla

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, American Funds is expected to generate 1.45 times less return on investment than Growth Fund. But when comparing it to its historical volatility, American Funds New Economy Fund is 1.19 times less risky than Growth Fund. It trades about 0.06 of its potential returns per unit of risk. The Growth Fund Of America Clas is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  4,852  in The Growth Fund Of America Clas on October 15, 2019 and sell it today you would earn a total of  268.00  from holding The Growth Fund Of America Clas or generate 5.52% return on investment over 30 days.

Pair Corralation between American Funds and Growth Fund

0.95
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Funds and Growth Fund

American Funds New Economy Fun diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Funds New Economy Fun and The Growth Fund Of America Cla in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 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 New Economy Fund are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of American Funds i.e. American Funds and Growth Fund go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
Search macroaxis.com