Correlation Between American Beacon and Qs Us
Can any of the company-specific risk be diversified away by investing in both American Beacon and Qs Us 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 American Beacon and Qs Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Sim and Qs Large Cap, you can compare the effects of market volatilities on American Beacon and Qs Us 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 American Beacon with a short position of Qs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Qs Us.
Diversification Opportunities for American Beacon and Qs Us
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and LMUSX is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Sim and Qs Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Large Cap and American 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 American Beacon Sim are associated (or correlated) with Qs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Large Cap has no effect on the direction of American Beacon i.e., American Beacon and Qs Us go up and down completely randomly.
Pair Corralation between American Beacon and Qs Us
Assuming the 90 days horizon American Beacon is expected to generate 4.15 times less return on investment than Qs Us. But when comparing it to its historical volatility, American Beacon Sim is 5.84 times less risky than Qs Us. It trades about 0.23 of its potential returns per unit of risk. Qs Large Cap is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,447 in Qs Large Cap on November 3, 2024 and sell it today you would earn a total of 76.00 from holding Qs Large Cap or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon Sim vs. Qs Large Cap
Performance |
| Timeline |
| American Beacon Sim |
| Qs Large Cap |
American Beacon and Qs Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Qs Us
The main advantage of trading using opposite American Beacon and Qs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Qs Us 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 Qs Us will offset losses from the drop in Qs Us' long position.| American Beacon vs. Amer Beacon Ark | American Beacon vs. Amer Beacon Ark | American Beacon vs. American Beacon Large | American Beacon vs. American Beacon Ark |
| Qs Us vs. Lord Abbett Convertible | Qs Us vs. Putnam Convertible Securities | Qs Us vs. Fidelity Sai Convertible | Qs Us vs. Virtus Convertible |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |