Correlation Between Tfa Alphagen and Amer Beacon
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Amer 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 Tfa Alphagen and Amer Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Amer Beacon Garcia, you can compare the effects of market volatilities on Tfa Alphagen and Amer 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 Tfa Alphagen with a short position of Amer Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Amer Beacon.
Diversification Opportunities for Tfa Alphagen and Amer Beacon
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tfa and Amer is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Amer Beacon Garcia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Beacon Garcia and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Amer Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Beacon Garcia has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Amer Beacon go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Amer Beacon
Assuming the 90 days horizon Tfa Alphagen Growth is expected to under-perform the Amer Beacon. In addition to that, Tfa Alphagen is 2.72 times more volatile than Amer Beacon Garcia. It trades about -0.03 of its total potential returns per unit of risk. Amer Beacon Garcia is currently generating about 0.03 per unit of volatility. If you would invest 858.00 in Amer Beacon Garcia on December 2, 2024 and sell it today you would earn a total of 5.00 from holding Amer Beacon Garcia or generate 0.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tfa Alphagen Growth vs. Amer Beacon Garcia
Performance |
Timeline |
Tfa Alphagen Growth |
Amer Beacon Garcia |
Tfa Alphagen and Amer Beacon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tfa Alphagen and Amer Beacon
The main advantage of trading using opposite Tfa Alphagen and Amer Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Amer 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 Amer Beacon will offset losses from the drop in Amer Beacon's long position.Tfa Alphagen vs. Forum Funds | Tfa Alphagen vs. Calamos Vertible Fund | Tfa Alphagen vs. Invesco Vertible Securities | Tfa Alphagen vs. Invesco Vertible Securities |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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