Correlation Between Aquagold International and American Beacon
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and American Beacon Funds, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and American Beacon.
Diversification Opportunities for Aquagold International and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and American Beacon Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Funds and Aquagold International 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 Aquagold International 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 Funds has no effect on the direction of Aquagold International i.e., Aquagold International and American Beacon go up and down completely randomly.
Pair Corralation between Aquagold International and American Beacon
If you would invest 820.00 in American Beacon Funds on September 1, 2024 and sell it today you would earn a total of 38.00 from holding American Beacon Funds or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. American Beacon Funds
Performance |
| Timeline |
| Aquagold International |
| American Beacon Funds |
Aquagold International and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and American Beacon
The main advantage of trading using opposite Aquagold International and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| American Beacon vs. Federated Institutional High | American Beacon vs. Pace High Yield | American Beacon vs. Dunham High Yield | American Beacon vs. Valic Company I |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |