Correlation Between Barings Active and Columbia Capital
Can any of the company-specific risk be diversified away by investing in both Barings Active and Columbia Capital 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 Columbia Capital 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 Columbia Capital Allocation, you can compare the effects of market volatilities on Barings Active and Columbia Capital 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 Columbia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Columbia Capital.
Diversification Opportunities for Barings Active and Columbia Capital
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and Columbia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Columbia Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Capital All 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 Columbia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Capital All has no effect on the direction of Barings Active i.e., Barings Active and Columbia Capital go up and down completely randomly.
Pair Corralation between Barings Active and Columbia Capital
Assuming the 90 days horizon Barings Active Short is expected to generate 0.22 times more return on investment than Columbia Capital. However, Barings Active Short is 4.47 times less risky than Columbia Capital. It trades about 0.18 of its potential returns per unit of risk. Columbia Capital Allocation is currently generating about -0.04 per unit of risk. If you would invest 923.00 in Barings Active Short on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Barings Active Short or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Barings Active Short vs. Columbia Capital Allocation
Performance |
| Timeline |
| Barings Active Short |
| Columbia Capital All |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Barings Active and Columbia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Columbia Capital
The main advantage of trading using opposite Barings Active and Columbia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Columbia Capital 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 Columbia Capital will offset losses from the drop in Columbia Capital's long position.| Barings Active vs. Pax High Yield | Barings Active vs. Jpmorgan High Yield | Barings Active vs. Msift High Yield | Barings Active vs. City National Rochdale |
| Columbia Capital vs. Acm Dynamic Opportunity | Columbia Capital vs. Rbc Microcap Value | Columbia Capital vs. Balanced Fund Investor | Columbia Capital vs. Red Oak Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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