Correlation Between American Beacon and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both American Beacon and Hartford Schroders 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 Beacon and Hartford Schroders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon International and Hartford Schroders Emerging, you can compare the effects of market volatilities on American Beacon and Hartford Schroders 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 Beacon with a short position of Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Hartford Schroders.
Diversification Opportunities for American Beacon and Hartford Schroders
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and HARTFORD is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon International and Hartford Schroders Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders and American Beacon 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 Beacon International are associated (or correlated) with Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of American Beacon i.e., American Beacon and Hartford Schroders go up and down completely randomly.
Pair Corralation between American Beacon and Hartford Schroders
Assuming the 90 days horizon American Beacon International is expected to generate 0.87 times more return on investment than Hartford Schroders. However, American Beacon International is 1.15 times less risky than Hartford Schroders. It trades about 0.05 of its potential returns per unit of risk. Hartford Schroders Emerging is currently generating about 0.02 per unit of risk. If you would invest 1,703 in American Beacon International on September 3, 2024 and sell it today you would earn a total of 316.00 from holding American Beacon International or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon International vs. Hartford Schroders Emerging
Performance |
| Timeline |
| American Beacon Inte |
| Hartford Schroders |
American Beacon and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Hartford Schroders
The main advantage of trading using opposite American Beacon and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Hartford Schroders 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 Hartford Schroders will offset losses from the drop in Hartford Schroders' long position.| American Beacon vs. Oakmark International Fund | American Beacon vs. Dodge International Stock | American Beacon vs. Oakmark International Fund | American Beacon vs. Oakmark International Fund |
| Hartford Schroders vs. Franklin Mutual Global | Hartford Schroders vs. Templeton Growth Fund | Hartford Schroders vs. Franklin Real Estate | Hartford Schroders vs. HUMANA INC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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