Correlation Between Amer Beacon and Small Pany
Can any of the company-specific risk be diversified away by investing in both Amer Beacon and Small Pany 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 Amer Beacon and Small Pany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Beacon Ark and Small Pany Growth, you can compare the effects of market volatilities on Amer Beacon and Small Pany 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 Amer Beacon with a short position of Small Pany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Beacon and Small Pany.
Diversification Opportunities for Amer Beacon and Small Pany
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Amer and Small is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Amer Beacon Ark and Small Pany Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Growth and Amer 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 Amer Beacon Ark are associated (or correlated) with Small Pany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Growth has no effect on the direction of Amer Beacon i.e., Amer Beacon and Small Pany go up and down completely randomly.
Pair Corralation between Amer Beacon and Small Pany
Assuming the 90 days horizon Amer Beacon is expected to generate 1.29 times less return on investment than Small Pany. In addition to that, Amer Beacon is 1.4 times more volatile than Small Pany Growth. It trades about 0.27 of its total potential returns per unit of risk. Small Pany Growth is currently generating about 0.48 per unit of volatility. If you would invest 845.00 in Small Pany Growth on August 25, 2024 and sell it today you would earn a total of 211.00 from holding Small Pany Growth or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amer Beacon Ark vs. Small Pany Growth
Performance |
| Timeline |
| Amer Beacon Ark |
| Small Pany Growth |
Amer Beacon and Small Pany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amer Beacon and Small Pany
The main advantage of trading using opposite Amer Beacon and Small Pany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Beacon position performs unexpectedly, Small Pany 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 Small Pany will offset losses from the drop in Small Pany's long position.| Amer Beacon vs. Ridgeworth Innovative Growth | Amer Beacon vs. Mid Cap Growth | Amer Beacon vs. Small Pany Growth | Amer Beacon vs. Morgan Stanley Multi |
| Small Pany vs. Mid Cap Growth | Small Pany vs. Morgan Stanley Multi | Small Pany vs. Growth Portfolio Class | Small Pany vs. Amer Beacon Ark |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |