Correlation Between American Beacon and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both American Beacon and Meta Platforms 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 Meta Platforms 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 Meta Platforms, you can compare the effects of market volatilities on American Beacon and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Meta Platforms.
Diversification Opportunities for American Beacon and Meta Platforms
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Meta is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN BEACON INTERNATIONAL and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of American Beacon i.e., American Beacon and Meta Platforms go up and down completely randomly.
Pair Corralation between American Beacon and Meta Platforms
If you would invest 1,844 in American Beacon International on December 30, 2023 and sell it today you would earn a total of 70.00 from holding American Beacon International or generate 3.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.35% |
Values | Daily Returns |
AMERICAN BEACON INTERNATIONAL vs. Meta Platforms
Performance |
Timeline |
American Beacon Inte |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
American Beacon and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with American Beacon and Meta Platforms
The main advantage of trading using opposite American Beacon and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.American Beacon vs. Dodge Cox International | American Beacon vs. Oakmark International Fund | American Beacon vs. Dodge International Stock | American Beacon vs. Oakmark International Fund |
Meta Platforms vs. Amgen Inc | Meta Platforms vs. Apogee Enterprises | Meta Platforms vs. Simpson Manufacturing | Meta Platforms vs. Western Digital |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |