Correlation Analysis Between Federated MDT and American Mutual

This module allows you to analyze existing cross correlation between Federated MDT All Cap Core Fund and American Mutual Fund Class R 2. You can compare the effects of market volatilities on Federated MDT and American Mutual 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 Federated MDT with a short position of American Mutual. See also your portfolio center. Please also check ongoing floating volatility patterns of Federated MDT and American Mutual.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Federated MDT All  
00

Risk-Adjusted Fund Performance

Over the last 30 days Federated MDT All Cap Core Fund has generated negative risk-adjusted returns adding no value to fund investors. Inspite fairly strong basic indicators, Federated MDT is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
American Mutual Fund  
33

Risk-Adjusted Fund Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Mutual Fund Class R 2 are ranked lower than 3 (%) of all funds and portfolios of funds over the last 30 days. Inspite fairly strong basic indicators, American Mutual is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Federated MDT and American Mutual Volatility Contrast

 Predicted Return Density 
      Returns 

Federated MDT All Cap Core Fun  vs.  American Mutual Fund Class R 2

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Federated MDT is expected to generate 4.4 times less return on investment than American Mutual. In addition to that, Federated MDT is 1.34 times more volatile than American Mutual Fund Class R 2. It trades about 0.01 of its total potential returns per unit of risk. American Mutual Fund Class R 2 is currently generating about 0.05 per unit of volatility. If you would invest  4,120  in American Mutual Fund Class R 2 on August 18, 2019 and sell it today you would earn a total of  89.00  from holding American Mutual Fund Class R 2 or generate 2.16% return on investment over 30 days.

Pair Corralation between Federated MDT and American Mutual

0.56
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Federated MDT and American Mutual

Federated MDT All Cap Core Fun diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Federated MDT All Cap Core Fun and American Mutual Fund Class R 2 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on American Mutual Fund and Federated MDT 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 Federated MDT All Cap Core Fund are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual Fund has no effect on the direction of Federated MDT i.e. Federated MDT and American Mutual go up and down completely randomly.
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