Correlation Between American Beacon and Community Reinvestment

Can any of the company-specific risk be diversified away by investing in both American Beacon and Community Reinvestment 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 Community Reinvestment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Beacon Ahl and Community Reinvestment Act, you can compare the effects of market volatilities on American Beacon and Community Reinvestment 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 Community Reinvestment. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Community Reinvestment.

Diversification Opportunities for American Beacon and Community Reinvestment

0.0

Correlation Coefficient

American Beacon  Community Reinvestment

Pay attention - limited upside

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

Pair Corralation between American Beacon and Community Reinvestment

If you would invest  904.00  in American Beacon Ahl on July 21, 2025 and sell it today you would earn a total of  63.00  from holding American Beacon Ahl or generate 6.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

American Beacon Ahl  vs.  Community Reinvestment Act

American Beacon Ahl

Risk-Adjusted Performance

Good

Over the last 90 days American Beacon Ahl has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak basic indicators, American Beacon may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Community Reinvestment

Risk-Adjusted Performance

Solid

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

Pair Trading with American Beacon and Community Reinvestment

The main advantage of trading using opposite American Beacon and Community Reinvestment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Community Reinvestment 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 Community Reinvestment will offset losses from the drop in Community Reinvestment's long position.

The idea behind American Beacon Ahl and Community Reinvestment Act 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.