Correlation Between American Beacon and Hartford Mid

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Can any of the company-specific risk be diversified away by investing in both American Beacon and Hartford Mid 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 Hartford Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Mid Cap and Hartford Mid Cap, you can compare the effects of market volatilities on American Beacon and Hartford Mid 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 Hartford Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Hartford Mid.

Diversification Opportunities for American Beacon and Hartford Mid

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between American and Hartford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN BEACON MID-CAP and Hartford Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Mid 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 Mid Cap are associated (or correlated) with Hartford Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Mid Cap has no effect on the direction of American Beacon i.e., American Beacon and Hartford Mid go up and down completely randomly.

Pair Corralation between American Beacon and Hartford Mid

If you would invest (100.00) in Hartford Mid Cap on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Hartford Mid Cap or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AMERICAN BEACON MID-CAP  vs.  Hartford Mid Cap

 Performance 
       Timeline  
American Beacon Mid-cap 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Hartford Mid Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Hartford Mid may actually be approaching a critical reversion point that can send shares even higher in April 2024.

American Beacon and Hartford Mid Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Beacon and Hartford Mid

The main advantage of trading using opposite American Beacon and Hartford Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Hartford Mid 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 Hartford Mid will offset losses from the drop in Hartford Mid's long position.
The idea behind American Beacon Mid Cap and Hartford Mid Cap 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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