Correlation Between Barings Active and Catalyst Intelligent
Can any of the company-specific risk be diversified away by investing in both Barings Active and Catalyst Intelligent 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 Catalyst Intelligent 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 Catalyst Intelligent Alternative, you can compare the effects of market volatilities on Barings Active and Catalyst Intelligent 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 Catalyst Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Catalyst Intelligent.
Diversification Opportunities for Barings Active and Catalyst Intelligent
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Catalyst is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Catalyst Intelligent Alternati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Intelligent 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 Catalyst Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Intelligent has no effect on the direction of Barings Active i.e., Barings Active and Catalyst Intelligent go up and down completely randomly.
Pair Corralation between Barings Active and Catalyst Intelligent
Assuming the 90 days horizon Barings Active is expected to generate 1.69 times less return on investment than Catalyst Intelligent. But when comparing it to its historical volatility, Barings Active Short is 6.22 times less risky than Catalyst Intelligent. It trades about 0.17 of its potential returns per unit of risk. Catalyst Intelligent Alternative is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 988.00 in Catalyst Intelligent Alternative on September 12, 2024 and sell it today you would earn a total of 216.00 from holding Catalyst Intelligent Alternative or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Catalyst Intelligent Alternati
Performance |
| Timeline |
| Barings Active Short |
| Catalyst Intelligent |
Barings Active and Catalyst Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Catalyst Intelligent
The main advantage of trading using opposite Barings Active and Catalyst Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Catalyst Intelligent 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 Catalyst Intelligent will offset losses from the drop in Catalyst Intelligent's long position.| Barings Active vs. SCOR PK | Barings Active vs. Morningstar Unconstrained Allocation | Barings Active vs. Via Renewables | Barings Active vs. Bondbloxx ETF Trust |
| Catalyst Intelligent vs. Artisan High Income | Catalyst Intelligent vs. T Rowe Price | Catalyst Intelligent vs. Western Asset High | Catalyst Intelligent vs. Ab Global Risk |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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