Correlation Between Barings Active and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Barings Active and Short-intermediate 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 Short-intermediate 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 Short Intermediate Bond Fund, you can compare the effects of market volatilities on Barings Active and Short-intermediate 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 Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Short-intermediate.
Diversification Opportunities for Barings Active and Short-intermediate
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Short-intermediate is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond 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 Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Barings Active i.e., Barings Active and Short-intermediate go up and down completely randomly.
Pair Corralation between Barings Active and Short-intermediate
Assuming the 90 days horizon Barings Active Short is expected to generate 1.0 times more return on investment than Short-intermediate. However, Barings Active Short is as risky as Short-intermediate. It trades about 0.13 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.05 per unit of risk. If you would invest 916.00 in Barings Active Short on September 2, 2024 and sell it today you would earn a total of 9.00 from holding Barings Active Short or generate 0.98% 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. Short Intermediate Bond Fund
Performance |
| Timeline |
| Barings Active Short |
| Short Intermediate Bond |
Barings Active and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Short-intermediate
The main advantage of trading using opposite Barings Active and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Barings Active vs. Calamos Dynamic Convertible | Barings Active vs. Ab Bond Inflation | Barings Active vs. Blrc Sgy Mnp | Barings Active vs. Artisan High Income |
| Short-intermediate vs. Small Pany Fund | Short-intermediate vs. Balanced Fund Institutional | Short-intermediate vs. Income Fund Institutional | Short-intermediate vs. Credit Suisse Floating |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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