Correlation Between Oil Gas and American Beacon
Can any of the company-specific risk be diversified away by investing in both Oil Gas 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 Oil Gas and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil Gas Ultrasector and American Beacon Glg, you can compare the effects of market volatilities on Oil Gas 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 Oil Gas with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil Gas and American Beacon.
Diversification Opportunities for Oil Gas and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oil and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oil Gas Ultrasector and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg and Oil Gas 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 Oil Gas Ultrasector 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 Glg has no effect on the direction of Oil Gas i.e., Oil Gas and American Beacon go up and down completely randomly.
Pair Corralation between Oil Gas and American Beacon
If you would invest 3,689 in Oil Gas Ultrasector on September 13, 2024 and sell it today you would lose (2.00) from holding Oil Gas Ultrasector or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Oil Gas Ultrasector vs. American Beacon Glg
Performance |
| Timeline |
| Oil Gas Ultrasector |
| American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oil Gas and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil Gas and American Beacon
The main advantage of trading using opposite Oil Gas and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil Gas 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.| Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector | Oil Gas vs. Fidelity Advisor Energy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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