Correlation Between Ab Value and Barings Active
Can any of the company-specific risk be diversified away by investing in both Ab Value and Barings Active 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 Ab Value and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Value Fund and Barings Active Short, you can compare the effects of market volatilities on Ab Value and Barings Active 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 Ab Value with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Value and Barings Active.
Diversification Opportunities for Ab Value and Barings Active
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ABVCX and Barings is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ab Value Fund and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short and Ab Value 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 Ab Value Fund are associated (or correlated) with Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Ab Value i.e., Ab Value and Barings Active go up and down completely randomly.
Pair Corralation between Ab Value and Barings Active
Assuming the 90 days horizon Ab Value Fund is expected to generate 5.87 times more return on investment than Barings Active. However, Ab Value is 5.87 times more volatile than Barings Active Short. It trades about 0.15 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.23 per unit of risk. If you would invest 1,807 in Ab Value Fund on September 1, 2024 and sell it today you would earn a total of 263.00 from holding Ab Value Fund or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Value Fund vs. Barings Active Short
Performance |
| Timeline |
| Ab Value Fund |
| Barings Active Short |
Ab Value and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Value and Barings Active
The main advantage of trading using opposite Ab Value and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Value position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Ab Value vs. Ab Global E | Ab Value vs. Ab Global E | Ab Value vs. Ab Global E | Ab Value vs. Ab Minnesota Portfolio |
| Barings Active vs. Ab Bond Inflation | Barings Active vs. Western Asset Inflation | Barings Active vs. Blackrock Inflation Protected | Barings Active vs. Aqr Managed Futures |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |