Correlation Between BZDYF and AMERICAN BEACON
Can any of the company-specific risk be diversified away by investing in both BZDYF 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 BZDYF and AMERICAN BEACON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BZDYF and AMERICAN BEACON INTERNATIONAL, you can compare the effects of market volatilities on BZDYF 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 BZDYF with a short position of AMERICAN BEACON. Check out your portfolio center. Please also check ongoing floating volatility patterns of BZDYF and AMERICAN BEACON.
Diversification Opportunities for BZDYF and AMERICAN BEACON
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BZDYF and AMERICAN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BZDYF 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 BZDYF 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 BZDYF 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 BZDYF i.e., BZDYF and AMERICAN BEACON go up and down completely randomly.
Pair Corralation between BZDYF and AMERICAN BEACON
Assuming the 90 days horizon BZDYF is expected to generate 6.93 times more return on investment than AMERICAN BEACON. However, BZDYF is 6.93 times more volatile than AMERICAN BEACON INTERNATIONAL. It trades about 0.08 of its potential returns per unit of risk. AMERICAN BEACON INTERNATIONAL is currently generating about 0.17 per unit of risk. If you would invest 2,695 in BZDYF on September 12, 2024 and sell it today you would earn a total of 542.00 from holding BZDYF or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.75% |
| Values | Daily Returns |
BZDYF vs. AMERICAN BEACON INTERNATIONAL
Performance |
| Timeline |
| BZDYF |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMERICAN BEACON INTE |
BZDYF and AMERICAN BEACON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BZDYF and AMERICAN BEACON
The main advantage of trading using opposite BZDYF and AMERICAN BEACON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BZDYF 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.| BZDYF vs. FT Vest Equity | BZDYF vs. Zillow Group Class | BZDYF vs. Northern Lights | BZDYF vs. VanEck Vectors Moodys |
| AMERICAN BEACON vs. Vanguard Total Stock | AMERICAN BEACON vs. SPDR SP 500 | AMERICAN BEACON vs. iShares Core SP | AMERICAN BEACON vs. Vanguard Total Bond |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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