Correlation Between American Beacon and Amplify Cybersecurity
Can any of the company-specific risk be diversified away by investing in both American Beacon and Amplify Cybersecurity 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 Amplify Cybersecurity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Select and Amplify Cybersecurity ETF, you can compare the effects of market volatilities on American Beacon and Amplify Cybersecurity 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 Amplify Cybersecurity. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Amplify Cybersecurity.
Diversification Opportunities for American Beacon and Amplify Cybersecurity
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between American and Amplify is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Select and Amplify Cybersecurity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Cybersecurity ETF 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 Select are associated (or correlated) with Amplify Cybersecurity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Cybersecurity ETF has no effect on the direction of American Beacon i.e., American Beacon and Amplify Cybersecurity go up and down completely randomly.
Pair Corralation between American Beacon and Amplify Cybersecurity
Given the investment horizon of 90 days American Beacon Select is expected to generate 0.99 times more return on investment than Amplify Cybersecurity. However, American Beacon Select is 1.01 times less risky than Amplify Cybersecurity. It trades about 0.2 of its potential returns per unit of risk. Amplify Cybersecurity ETF is currently generating about 0.06 per unit of risk. If you would invest 2,235 in American Beacon Select on August 14, 2025 and sell it today you would earn a total of 361.00 from holding American Beacon Select or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon Select vs. Amplify Cybersecurity ETF
Performance |
| Timeline |
| American Beacon Select |
| Amplify Cybersecurity ETF |
American Beacon and Amplify Cybersecurity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Amplify Cybersecurity
The main advantage of trading using opposite American Beacon and Amplify Cybersecurity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Amplify Cybersecurity 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 Amplify Cybersecurity will offset losses from the drop in Amplify Cybersecurity's long position.| American Beacon vs. Tema Cardiovascular and | American Beacon vs. Exchange Listed Funds | American Beacon vs. EA Series Trust | American Beacon vs. Advisors Inner Circle |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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