Correlation Between American Century and Clifford Capital
Can any of the company-specific risk be diversified away by investing in both American Century and Clifford Capital 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 Century and Clifford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Century Investments and Clifford Capital Partners, you can compare the effects of market volatilities on American Century and Clifford Capital 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 Century with a short position of Clifford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and Clifford Capital.
Diversification Opportunities for American Century and Clifford Capital
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Clifford is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding American Century Investments and Clifford Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifford Capital Partners and American Century 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 Century Investments are associated (or correlated) with Clifford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifford Capital Partners has no effect on the direction of American Century i.e., American Century and Clifford Capital go up and down completely randomly.
Pair Corralation between American Century and Clifford Capital
Assuming the 90 days horizon American Century is expected to generate 1.34 times less return on investment than Clifford Capital. But when comparing it to its historical volatility, American Century Investments is 1.22 times less risky than Clifford Capital. It trades about 0.06 of its potential returns per unit of risk. Clifford Capital Partners is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,989 in Clifford Capital Partners on September 12, 2025 and sell it today you would earn a total of 333.00 from holding Clifford Capital Partners or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Century Investments vs. Clifford Capital Partners
Performance |
| Timeline |
| American Century Inv |
| Clifford Capital Partners |
American Century and Clifford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and Clifford Capital
The main advantage of trading using opposite American Century and Clifford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century position performs unexpectedly, Clifford Capital 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 Clifford Capital will offset losses from the drop in Clifford Capital's long position.| American Century vs. Saat Market Growth | American Century vs. Clifford Capital Partners | American Century vs. Clifford Capital Partners | American Century vs. Royce International Premier |
| Clifford Capital vs. Clifford Capital Partners | Clifford Capital vs. Neuberger Berman Mid | Clifford Capital vs. Saat Market Growth | Clifford Capital vs. American Century Investments |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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