Correlation Between Cargile Fund and Americafirst Monthly

Can any of the company-specific risk be diversified away by investing in both Cargile Fund and Americafirst Monthly 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 Cargile Fund and Americafirst Monthly into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cargile Fund and Americafirst Monthly Risk On, you can compare the effects of market volatilities on Cargile Fund and Americafirst Monthly 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 Cargile Fund with a short position of Americafirst Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cargile Fund and Americafirst Monthly.

Diversification Opportunities for Cargile Fund and Americafirst Monthly

0.93

Correlation Coefficient

Cargile Fund  Americafirst Monthly

Almost no diversification

The 3 months correlation between Cargile and Americafirst is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cargile Fund and Americafirst Monthly Risk On in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americafirst Monthly and Cargile Fund 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 Cargile Fund are associated (or correlated) with Americafirst Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americafirst Monthly has no effect on the direction of Cargile Fund i.e., Cargile Fund and Americafirst Monthly go up and down completely randomly.

Pair Corralation between Cargile Fund and Americafirst Monthly

Assuming the 90 days horizon Cargile Fund is expected to generate 5.11 times less return on investment than Americafirst Monthly. But when comparing it to its historical volatility, Cargile Fund is 4.01 times less risky than Americafirst Monthly. It trades about 0.11 of its potential returns per unit of risk. Americafirst Monthly Risk On is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,333  in Americafirst Monthly Risk On on September 27, 2024 and sell it today you would earn a total of  159.00  from holding Americafirst Monthly Risk On or generate 11.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Cargile Fund  vs.  Americafirst Monthly Risk On

Cargile Fund

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cargile Fund are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Cargile Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Americafirst Monthly

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Americafirst Monthly Risk On are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Americafirst Monthly may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Cargile Fund and Americafirst Monthly

The main advantage of trading using opposite Cargile Fund and Americafirst Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cargile Fund position performs unexpectedly, Americafirst Monthly 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 Americafirst Monthly will offset losses from the drop in Americafirst Monthly's long position.

The idea behind Cargile Fund and Americafirst Monthly Risk On pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.