Correlation Between American Century and Intech Managed
Can any of the company-specific risk be diversified away by investing in both American Century and Intech Managed 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 Intech Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Century Etf and Intech Managed Volatility, you can compare the effects of market volatilities on American Century and Intech Managed 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 Intech Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Century and Intech Managed.
Diversification Opportunities for American Century and Intech Managed
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Intech is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding American Century Etf and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Etf are associated (or correlated) with Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of American Century i.e., American Century and Intech Managed go up and down completely randomly.
Pair Corralation between American Century and Intech Managed
Assuming the 90 days horizon American Century Etf is expected to generate 1.47 times more return on investment than Intech Managed. However, American Century is 1.47 times more volatile than Intech Managed Volatility. It trades about 0.25 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.28 per unit of risk. If you would invest 1,430 in American Century Etf on April 17, 2025 and sell it today you would earn a total of 279.00 from holding American Century Etf or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Century Etf vs. Intech Managed Volatility
Performance |
| Timeline |
| American Century Etf |
| Intech Managed Volatility |
American Century and Intech Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Century and Intech Managed
The main advantage of trading using opposite American Century and Intech Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Century position performs unexpectedly, Intech Managed 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 Intech Managed will offset losses from the drop in Intech Managed's long position.| American Century vs. The Gabelli Money | American Century vs. California Municipal Portfolio | American Century vs. Elfun Government Money | American Century vs. Blackrock Exchange Portfolio |
| Intech Managed vs. Classic Value Fund | Intech Managed vs. Strategic Income Opportunities | Intech Managed vs. Us Global Leaders | Intech Managed vs. Columbia Select Large |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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