Correlation Between 361 Global and American Beacon
Can any of the company-specific risk be diversified away by investing in both 361 Global and American Beacon 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 361 Global and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and American Beacon Mid Cap, you can compare the effects of market volatilities on 361 Global and American Beacon 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 361 Global with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and American Beacon.
Diversification Opportunities for 361 Global and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 361 and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and American Beacon Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Mid and 361 Global 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 361 Global Longshort are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Mid has no effect on the direction of 361 Global i.e., 361 Global and American Beacon go up and down completely randomly.
Pair Corralation between 361 Global and American Beacon
If you would invest 1,145 in 361 Global Longshort on September 4, 2024 and sell it today you would earn a total of 137.00 from holding 361 Global Longshort or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
361 Global Longshort vs. American Beacon Mid Cap
Performance |
| Timeline |
| 361 Global Longshort |
| American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
361 Global and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 361 Global and American Beacon
The main advantage of trading using opposite 361 Global and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| 361 Global vs. Aqr Large Cap | 361 Global vs. Americafirst Large Cap | 361 Global vs. Siit Large Cap | 361 Global vs. Qs Large Cap |
| American Beacon vs. Siit Global Managed | American Beacon vs. Qs Global Equity | American Beacon vs. 361 Global Longshort | American Beacon vs. Morningstar Global Income |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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