Correlation Between American Beacon and Hartford Midcap
Can any of the company-specific risk be diversified away by investing in both American Beacon and Hartford Midcap 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 Midcap 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 The Hartford Midcap, you can compare the effects of market volatilities on American Beacon and Hartford Midcap 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 Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Hartford Midcap.
Diversification Opportunities for American Beacon and Hartford Midcap
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 The Hartford Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Midcap 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 Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Midcap has no effect on the direction of American Beacon i.e., American Beacon and Hartford Midcap go up and down completely randomly.
Pair Corralation between American Beacon and Hartford Midcap
If you would invest (100.00) in American Beacon Mid Cap on January 21, 2024 and sell it today you would earn a total of 100.00 from holding American Beacon Mid Cap or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
American Beacon Mid Cap vs. The Hartford Midcap
Performance |
Timeline |
American Beacon Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hartford Midcap |
American Beacon and Hartford Midcap Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Beacon and Hartford Midcap
The main advantage of trading using opposite American Beacon and Hartford Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Hartford Midcap 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 Midcap will offset losses from the drop in Hartford Midcap's long position.American Beacon vs. Neuberger Berman Income | American Beacon vs. Blackrock High Yield | American Beacon vs. Inverse High Yield | American Beacon vs. Prudential High Yield |
Hartford Midcap vs. The Hartford Growth | Hartford Midcap vs. The Hartford Growth | Hartford Midcap vs. The Hartford Growth | Hartford Midcap vs. The Hartford 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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