Correlation Between American Customer and Anfield Universal

Can any of the company-specific risk be diversified away by investing in both American Customer and Anfield Universal 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 Customer and Anfield Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Customer Satisfaction and Anfield Universal Fixed, you can compare the effects of market volatilities on American Customer and Anfield Universal 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 Customer with a short position of Anfield Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Customer and Anfield Universal.

Diversification Opportunities for American Customer and Anfield Universal

0.95

Correlation Coefficient

American Customer  Anfield Universal

Almost no diversification

The 3 months correlation between American and Anfield is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding American Customer Satisfaction and Anfield Universal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Universal Fixed and American Customer 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 Customer Satisfaction are associated (or correlated) with Anfield Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Universal Fixed has no effect on the direction of American Customer i.e., American Customer and Anfield Universal go up and down completely randomly.

Pair Corralation between American Customer and Anfield Universal

Given the investment horizon of 90 days American Customer Satisfaction is expected to generate 4.67 times more return on investment than Anfield Universal. However, American Customer is 4.67 times more volatile than Anfield Universal Fixed. It trades about 0.08 of its potential returns per unit of risk. Anfield Universal Fixed is currently generating about 0.16 per unit of risk. If you would invest  4,565  in American Customer Satisfaction on May 6, 2025 and sell it today you would earn a total of  1,808  from holding American Customer Satisfaction or generate 39.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

American Customer Satisfaction  vs.  Anfield Universal Fixed

American Customer

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in American Customer Satisfaction are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, American Customer is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Anfield Universal Fixed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anfield Universal Fixed are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Anfield Universal is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with American Customer and Anfield Universal

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

The idea behind American Customer Satisfaction and Anfield Universal Fixed 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.