Correlation Between Growth Strategy and Amer Beacon
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Amer 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 Growth Strategy and Amer Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Amer Beacon Garcia, you can compare the effects of market volatilities on Growth Strategy and Amer 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 Growth Strategy with a short position of Amer Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Amer Beacon.
Diversification Opportunities for Growth Strategy and Amer Beacon
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GROWTH and Amer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Amer Beacon Garcia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Beacon Garcia and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Amer Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Beacon Garcia has no effect on the direction of Growth Strategy i.e., Growth Strategy and Amer Beacon go up and down completely randomly.
Pair Corralation between Growth Strategy and Amer Beacon
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 1.09 times more return on investment than Amer Beacon. However, Growth Strategy is 1.09 times more volatile than Amer Beacon Garcia. It trades about 0.34 of its potential returns per unit of risk. Amer Beacon Garcia is currently generating about 0.11 per unit of risk. If you would invest 1,167 in Growth Strategy Fund on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Growth Strategy Fund or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Amer Beacon Garcia
Performance |
| Timeline |
| Growth Strategy |
| Amer Beacon Garcia |
Growth Strategy and Amer Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Amer Beacon
The main advantage of trading using opposite Growth Strategy and Amer Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Amer 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 Amer Beacon will offset losses from the drop in Amer Beacon's long position.| Growth Strategy vs. International Developed Markets | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate | Growth Strategy vs. Global Real Estate |
| Amer Beacon vs. Vanguard Star Fund | Amer Beacon vs. Multimanager Lifestyle Aggressive | Amer Beacon vs. Needham Aggressive Growth | Amer Beacon vs. Lgm Risk Managed |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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