American Beacon Bridgeway Fund Market Value
| BWLAX Fund | USD 24.48 0.25 1.01% |
| Symbol | American |
American Beacon 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to American Beacon's mutual fund what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of American Beacon.
| 03/17/2024 |
| 04/16/2024 |
If you would invest 0.00 in American Beacon on March 17, 2024 and sell it all today you would earn a total of 0.00 from holding American Beacon Bridgeway or generate 0.0% return on investment in American Beacon over 30 days. American Beacon is related to or competes with American Beacon, American Beacon, American Beacon, American Beacon, American Beacon, American Beacon, and American Beacon. The fund invests in a diversified portfolio of stocks of large capitalization companies that are listed on the New York ... More
American Beacon Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure American Beacon's mutual fund current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess American Beacon Bridgeway upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.756 | |||
| Information Ratio | 0.0883 | |||
| Maximum Drawdown | 3.07 | |||
| Value At Risk | (1.20) | |||
| Potential Upside | 1.16 |
American Beacon Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Beacon's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Beacon's standard deviation. In reality, there are many statistical measures that can use American Beacon historical prices to predict the future American Beacon's volatility.| Risk Adjusted Performance | 0.1128 | |||
| Jensen Alpha | 0.0587 | |||
| Total Risk Alpha | 0.0556 | |||
| Sortino Ratio | 0.0814 | |||
| Treynor Ratio | 0.1085 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Beacon's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
American Beacon Bridgeway Backtested Returns
We consider American Beacon very steady. American Beacon Bridgeway secures Sharpe Ratio (or Efficiency) of 0.22, which signifies that the fund had a 0.22% return per unit of standard deviation over the last 3 months. We have found twenty-seven technical indicators for American Beacon Bridgeway, which you can use to evaluate the volatility of the entity. Please confirm American Beacon's mean deviation of 0.5471, and Risk Adjusted Performance of 0.1128 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%. The fund shows a Beta (market volatility) of 1.05, which signifies a somewhat significant risk relative to the market. American Beacon returns are very sensitive to returns on the market. As the market goes up or down, American Beacon is expected to follow.
Auto-correlation | -0.73 |
Almost perfect reverse predictability
American Beacon Bridgeway has almost perfect reverse predictability. Overlapping area represents the amount of predictability between American Beacon time series from 17th of March 2024 to 1st of April 2024 and 1st of April 2024 to 16th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of American Beacon Bridgeway price movement. The serial correlation of -0.73 indicates that around 73.0% of current American Beacon price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.73 | |
| Spearman Rank Test | -0.56 | |
| Residual Average | 0.0 | |
| Price Variance | 0.07 |
American Beacon Bridgeway lagged returns against current returns
Autocorrelation, which is American Beacon mutual fund's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting American Beacon's mutual fund expected returns. We can calculate the autocorrelation of American Beacon returns to help us make a trade decision. For example, suppose you find that American Beacon has exhibited high autocorrelation historically, and you observe that the mutual fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
American Beacon regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If American Beacon mutual fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Beacon mutual fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Beacon mutual fund over time.
Current vs Lagged Prices |
| Timeline |
American Beacon Lagged Returns
When evaluating American Beacon's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Beacon mutual fund have on its future price. American Beacon autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, American Beacon autocorrelation shows the relationship between American Beacon mutual fund current value and its past values and can show if there is a momentum factor associated with investing in American Beacon Bridgeway.
Regressed Prices |
| Timeline |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards American Beacon in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, American Beacon's short interest history, or implied volatility extrapolated from American Beacon options trading.
Pair Trading with American Beacon
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Beacon position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with American Mutual Fund
| 1.0 | AADEX | American Beacon Large | PairCorr |
| 0.95 | AAIEX | American Beacon Inte | PairCorr |
| 1.0 | BWLYX | American Beacon Bridgeway | PairCorr |
| 1.0 | BWLIX | American Beacon Bridgeway | PairCorr |
| 0.92 | AVFIX | American Beacon Small | PairCorr |
Moving against American Mutual Fund
| 0.62 | PFHCX | Pacific Funds Small | PairCorr |
The ability to find closely correlated positions to American Beacon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Beacon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Beacon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Beacon Bridgeway to buy it.
The correlation of American Beacon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Beacon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Beacon Bridgeway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Beacon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American Beacon Correlation, American Beacon Volatility and American Beacon Alpha and Beta module to complement your research on American Beacon. Note that the American Beacon Bridgeway information on this page should be used as a complementary analysis to other American Beacon's statistical models used 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
American Beacon technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.