Correlation Between Fpa Queens and American Beacon
Can any of the company-specific risk be diversified away by investing in both Fpa Queens and American Beacon 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 Fpa Queens and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fpa Queens Road and American Beacon Small, you can compare the effects of market volatilities on Fpa Queens and American Beacon 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 Fpa Queens with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fpa Queens and American Beacon.
Diversification Opportunities for Fpa Queens and American Beacon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fpa and AMERICAN is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fpa Queens Road and American Beacon Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Small and Fpa Queens 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 Fpa Queens Road are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Small has no effect on the direction of Fpa Queens i.e., Fpa Queens and American Beacon go up and down completely randomly.
Pair Corralation between Fpa Queens and American Beacon
Assuming the 90 days horizon Fpa Queens Road is expected to generate 0.83 times more return on investment than American Beacon. However, Fpa Queens Road is 1.2 times less risky than American Beacon. It trades about 0.04 of its potential returns per unit of risk. American Beacon Small is currently generating about 0.01 per unit of risk. If you would invest 3,832 in Fpa Queens Road on March 21, 2025 and sell it today you would earn a total of 158.00 from holding Fpa Queens Road or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fpa Queens Road vs. American Beacon Small
Performance |
| Timeline |
| Fpa Queens Road |
| American Beacon Small |
Fpa Queens and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fpa Queens and American Beacon
The main advantage of trading using opposite Fpa Queens and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fpa Queens position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Fpa Queens vs. 1919 Financial Services | Fpa Queens vs. John Hancock Financial | Fpa Queens vs. Gabelli Global Financial | Fpa Queens vs. Financial Industries Fund |
| American Beacon vs. Global Diversified Income | American Beacon vs. Jpmorgan Diversified Fund | American Beacon vs. Delaware Limited Term Diversified | American Beacon vs. Fidelity Advisor Diversified |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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