Correlation Between Asg Managed and American Beacon
Can any of the company-specific risk be diversified away by investing in both Asg Managed 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 Asg Managed and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and American Beacon International, you can compare the effects of market volatilities on Asg Managed 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 Asg Managed with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and American Beacon.
Diversification Opportunities for Asg Managed and American Beacon
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asg and American is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and American Beacon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Inte and Asg Managed 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 Asg Managed Futures 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 Inte has no effect on the direction of Asg Managed i.e., Asg Managed and American Beacon go up and down completely randomly.
Pair Corralation between Asg Managed and American Beacon
Assuming the 90 days horizon Asg Managed Futures is expected to under-perform the American Beacon. In addition to that, Asg Managed is 1.41 times more volatile than American Beacon International. It trades about -0.05 of its total potential returns per unit of risk. American Beacon International is currently generating about 0.07 per unit of volatility. If you would invest 1,566 in American Beacon International on September 12, 2024 and sell it today you would earn a total of 478.00 from holding American Beacon International or generate 30.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Managed Futures vs. American Beacon International
Performance |
| Timeline |
| Asg Managed Futures |
| American Beacon Inte |
Asg Managed and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and American Beacon
The main advantage of trading using opposite Asg Managed and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed 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.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
| American Beacon vs. Oakmark International Fund | American Beacon vs. Dodge International Stock | American Beacon vs. Oakmark International Fund | American Beacon vs. Oakmark International Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |