Correlation Between American Mutual and Mfs Prudent
Can any of the company-specific risk be diversified away by investing in both American Mutual and Mfs Prudent 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 Mfs Prudent 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 Mfs Prudent Investor, you can compare the effects of market volatilities on American Mutual and Mfs Prudent 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 Mfs Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Mfs Prudent.
Diversification Opportunities for American Mutual and Mfs Prudent
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Mfs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund and Mfs Prudent Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Prudent Investor 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 Mfs Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Prudent Investor has no effect on the direction of American Mutual i.e., American Mutual and Mfs Prudent go up and down completely randomly.
Pair Corralation between American Mutual and Mfs Prudent
If you would invest 5,687 in American Mutual Fund on May 27, 2025 and sell it today you would earn a total of 396.00 from holding American Mutual Fund or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Mfs Prudent Investor
Performance |
| Timeline |
| American Mutual |
| Mfs Prudent Investor |
American Mutual and Mfs Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Mfs Prudent
The main advantage of trading using opposite American Mutual and Mfs Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual position performs unexpectedly, Mfs Prudent 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 Mfs Prudent will offset losses from the drop in Mfs Prudent's long position.| American Mutual vs. Amcap Fund Class | American Mutual vs. American Balanced Fund | American Mutual vs. New Perspective Fund | American Mutual vs. New World Fund |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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