Correlation Between Gurtin California and American Beacon
Can any of the company-specific risk be diversified away by investing in both Gurtin California 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 Gurtin California and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gurtin California Muni and American Beacon Bridgeway, you can compare the effects of market volatilities on Gurtin California 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 Gurtin California with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gurtin California and American Beacon.
Diversification Opportunities for Gurtin California and American Beacon
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gurtin and AMERICAN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gurtin California Muni and American Beacon Bridgeway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Bridgeway and Gurtin California 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 Gurtin California Muni 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 Bridgeway has no effect on the direction of Gurtin California i.e., Gurtin California and American Beacon go up and down completely randomly.
Pair Corralation between Gurtin California and American Beacon
Assuming the 90 days horizon Gurtin California is expected to generate 16.28 times less return on investment than American Beacon. But when comparing it to its historical volatility, Gurtin California Muni is 6.68 times less risky than American Beacon. It trades about 0.1 of its potential returns per unit of risk. American Beacon Bridgeway is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,163 in American Beacon Bridgeway on October 25, 2024 and sell it today you would earn a total of 71.00 from holding American Beacon Bridgeway or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gurtin California Muni vs. American Beacon Bridgeway
Performance |
| Timeline |
| Gurtin California Muni |
| American Beacon Bridgeway |
Gurtin California and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gurtin California and American Beacon
The main advantage of trading using opposite Gurtin California and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gurtin California 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.| Gurtin California vs. Aqr Global Macro | Gurtin California vs. Asg Global Alternatives | Gurtin California vs. Wisdomtree Siegel Global | Gurtin California vs. Dws Global Macro |
| American Beacon vs. Jp Morgan Smartretirement | American Beacon vs. College Retirement Equities | American Beacon vs. Putnman Retirement Ready | American Beacon vs. Columbia Moderate Growth |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |