Correlation Between WisdomTree Managed and American Beacon
Can any of the company-specific risk be diversified away by investing in both WisdomTree Managed 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 WisdomTree Managed and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Managed Futures and American Beacon Select, you can compare the effects of market volatilities on WisdomTree Managed 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 WisdomTree Managed with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Managed and American Beacon.
Diversification Opportunities for WisdomTree Managed and American Beacon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WisdomTree and American is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Managed Futures and American Beacon Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Select and WisdomTree Managed 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 WisdomTree Managed Futures 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 Select has no effect on the direction of WisdomTree Managed i.e., WisdomTree Managed and American Beacon go up and down completely randomly.
Pair Corralation between WisdomTree Managed and American Beacon
Given the investment horizon of 90 days WisdomTree Managed Futures is expected to generate 0.52 times more return on investment than American Beacon. However, WisdomTree Managed Futures is 1.93 times less risky than American Beacon. It trades about 0.07 of its potential returns per unit of risk. American Beacon Select is currently generating about 0.01 per unit of risk. If you would invest 3,209 in WisdomTree Managed Futures on July 22, 2025 and sell it today you would earn a total of 653.00 from holding WisdomTree Managed Futures or generate 20.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Managed Futures vs. American Beacon Select
Performance |
| Timeline |
| WisdomTree Managed |
| American Beacon Select |
WisdomTree Managed and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Managed and American Beacon
The main advantage of trading using opposite WisdomTree Managed and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Managed 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.| WisdomTree Managed vs. Exchange Traded Concepts | WisdomTree Managed vs. Elevation Series Trust | WisdomTree Managed vs. SPDR MSCI World | WisdomTree Managed vs. The RBB Fund |
| American Beacon vs. FundX Investment Trust | American Beacon vs. Fidelity Disruptive Finance | American Beacon vs. FundX Investment Trust | American Beacon vs. Touchstone ETF Trust |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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