Correlation Between Amer Beacon and Bond Fund

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Amer Beacon and Bond Fund 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 Amer Beacon and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amer Beacon Garcia and Bond Fund Of, you can compare the effects of market volatilities on Amer Beacon and Bond Fund 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 Amer Beacon with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amer Beacon and Bond Fund.

Diversification Opportunities for Amer Beacon and Bond Fund

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Amer and Bond is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Amer Beacon Garcia and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund and Amer Beacon 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 Amer Beacon Garcia are associated (or correlated) with Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Amer Beacon i.e., Amer Beacon and Bond Fund go up and down completely randomly.

Pair Corralation between Amer Beacon and Bond Fund

Assuming the 90 days horizon Amer Beacon is expected to generate 1.09 times less return on investment than Bond Fund. In addition to that, Amer Beacon is 1.35 times more volatile than Bond Fund Of. It trades about 0.03 of its total potential returns per unit of risk. Bond Fund Of is currently generating about 0.04 per unit of volatility. If you would invest  1,126  in Bond Fund Of on August 29, 2024 and sell it today you would earn a total of  3.00  from holding Bond Fund Of or generate 0.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Amer Beacon Garcia  vs.  Bond Fund Of

 Performance 
       Timeline  
Amer Beacon Garcia 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Amer Beacon Garcia has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Amer Beacon is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Bond Fund 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bond Fund Of has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Bond Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amer Beacon and Bond Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Amer Beacon and Bond Fund

The main advantage of trading using opposite Amer Beacon and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amer Beacon position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.
The idea behind Amer Beacon Garcia and Bond Fund Of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Transaction History
View history of all your transactions and understand their impact on performance
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes