Correlation Between American Beacon and Fidelity Sustainable

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both American Beacon and Fidelity Sustainable 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 Fidelity Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Beacon Mid-Cap and Fidelity Sustainable International, you can compare the effects of market volatilities on American Beacon and Fidelity Sustainable 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 Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Beacon and Fidelity Sustainable.

Diversification Opportunities for American Beacon and Fidelity Sustainable

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between American and Fidelity is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Beacon Mid-Cap and Fidelity Sustainable Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable 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 Mid-Cap are associated (or correlated) with Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable has no effect on the direction of American Beacon i.e., American Beacon and Fidelity Sustainable go up and down completely randomly.

Pair Corralation between American Beacon and Fidelity Sustainable

Assuming the 90 days horizon American Beacon Mid-Cap is expected to generate 1.61 times more return on investment than Fidelity Sustainable. However, American Beacon is 1.61 times more volatile than Fidelity Sustainable International. It trades about 0.02 of its potential returns per unit of risk. Fidelity Sustainable International is currently generating about -0.06 per unit of risk. If you would invest  1,068  in American Beacon Mid-Cap on August 28, 2022 and sell it today you would earn a total of  149.00  from holding American Beacon Mid-Cap or generate 13.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy40.77%
ValuesDaily Returns

American Beacon Mid-Cap  vs.  Fidelity Sustainable Internati

 Performance (%) 
       Timeline  
American Beacon Mid-Cap 
American Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Beacon Mid-Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, American Beacon may actually be approaching a critical reversion point that can send shares even higher in December 2022.

American Price Channel

Fidelity Sustainable 
Fidelity Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sustainable International are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Fidelity Sustainable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Price Channel

American Beacon and Fidelity Sustainable Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with American Beacon and Fidelity Sustainable

The main advantage of trading using opposite American Beacon and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Beacon position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable's long position.
American Beacon vs. John Hancock Funds
The idea behind American Beacon Mid-Cap and Fidelity Sustainable International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Fidelity Sustainable vs. Vanguard Developed Markets
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go