Correlation Analysis Between American Funds and Vanguard European

This module allows you to analyze existing cross correlation between American Funds Intermediate B and Vanguard European Stock Index F. You can compare the effects of market volatilities on American Funds and Vanguard European 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 Vanguard European. See also your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Vanguard European.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

American Funds Inter  
00

Risk-Adjusted Fund Performance

Over the last 30 days American Funds Intermediate B 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.
Vanguard European Stock  
77

Risk-Adjusted Fund Performance

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

American Funds and Vanguard European Volatility Contrast

 Predicted Return Density 
      Returns 

American Funds Intermediate B  vs.  Vanguard European Stock Index

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, American Funds Intermediate B is expected to under-perform the Vanguard European. But the fund apears to be less risky and, when comparing its historical volatility, American Funds Intermediate B is 3.99 times less risky than Vanguard European. The fund trades about -0.01 of its potential returns per unit of risk. The Vanguard European Stock Index F is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  12,804  in Vanguard European Stock Index F on November 6, 2019 and sell it today you would earn a total of  598.00  from holding Vanguard European Stock Index F or generate 4.67% return on investment over 30 days.

Pair Corralation between American Funds and Vanguard European

-0.44
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Diversification Opportunities for American Funds and Vanguard European

American Funds Intermediate B diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Funds Intermediate B and Vanguard European Stock Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Vanguard European Stock 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 Intermediate B are associated (or correlated) with Vanguard European. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard European Stock has no effect on the direction of American Funds i.e. American Funds and Vanguard European go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.


 
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