Correlation Between American Beacon and Integrity Dividend
Can any of the company-specific risk be diversified away by investing in both American Beacon and Integrity Dividend 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 Integrity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon International and Integrity Dividend Harvest, you can compare the effects of market volatilities on American Beacon and Integrity Dividend 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 Integrity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Integrity Dividend.
Diversification Opportunities for American Beacon and Integrity Dividend
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between American and Integrity is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon International and Integrity Dividend Harvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Dividend 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 International are associated (or correlated) with Integrity Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Dividend has no effect on the direction of American Beacon i.e., American Beacon and Integrity Dividend go up and down completely randomly.
Pair Corralation between American Beacon and Integrity Dividend
Assuming the 90 days horizon American Beacon is expected to generate 2.75 times less return on investment than Integrity Dividend. In addition to that, American Beacon is 1.33 times more volatile than Integrity Dividend Harvest. It trades about 0.03 of its total potential returns per unit of risk. Integrity Dividend Harvest is currently generating about 0.09 per unit of volatility. If you would invest 1,998 in Integrity Dividend Harvest on August 26, 2025 and sell it today you would earn a total of 64.00 from holding Integrity Dividend Harvest or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Beacon International vs. Integrity Dividend Harvest
Performance |
| Timeline |
| American Beacon Inte |
| Integrity Dividend |
American Beacon and Integrity Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Beacon and Integrity Dividend
The main advantage of trading using opposite American Beacon and Integrity Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Integrity Dividend 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 Integrity Dividend will offset losses from the drop in Integrity Dividend's long position.| American Beacon vs. Nationwide Investor Destinations | American Beacon vs. Ultra Short Fixed Income | American Beacon vs. L Abbett Fundamental | American Beacon vs. Sterling Capital Behavioral |
| Integrity Dividend vs. T Rowe Price | Integrity Dividend vs. T Rowe Price | Integrity Dividend vs. Valic Company I | Integrity Dividend vs. Transamerica Asset Allocation |
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 Stocks Directory module to find actively traded stocks across global markets.
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