Correlation Between Barings Active and Alpine Ultra
Can any of the company-specific risk be diversified away by investing in both Barings Active and Alpine Ultra 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 Barings Active and Alpine Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Alpine Ultra Short, you can compare the effects of market volatilities on Barings Active and Alpine Ultra 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 Barings Active with a short position of Alpine Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Alpine Ultra.
Diversification Opportunities for Barings Active and Alpine Ultra
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Alpine is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Alpine Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Ultra Short and Barings Active 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 Barings Active Short are associated (or correlated) with Alpine Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Ultra Short has no effect on the direction of Barings Active i.e., Barings Active and Alpine Ultra go up and down completely randomly.
Pair Corralation between Barings Active and Alpine Ultra
Assuming the 90 days horizon Barings Active Short is expected to generate 2.51 times more return on investment than Alpine Ultra. However, Barings Active is 2.51 times more volatile than Alpine Ultra Short. It trades about 0.17 of its potential returns per unit of risk. Alpine Ultra Short is currently generating about 0.22 per unit of risk. If you would invest 811.00 in Barings Active Short on September 16, 2024 and sell it today you would earn a total of 114.00 from holding Barings Active Short or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Alpine Ultra Short
Performance |
| Timeline |
| Barings Active Short |
| Alpine Ultra Short |
Barings Active and Alpine Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Alpine Ultra
The main advantage of trading using opposite Barings Active and Alpine Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Alpine Ultra 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 Alpine Ultra will offset losses from the drop in Alpine Ultra's long position.| Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Emerging Markets | Barings Active vs. Barings Active Short | Barings Active vs. Barings Global Floating |
| Alpine Ultra vs. Alpine Ultra Short | Alpine Ultra vs. Alpine Dynamic Dividend | Alpine Ultra vs. Alpine Realty Income | Alpine Ultra vs. Alpine Global Infrastructure |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |