Correlation Between Barings Active and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Barings Active and Issachar Fund 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 Issachar Fund 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 Issachar Fund Class, you can compare the effects of market volatilities on Barings Active and Issachar Fund 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 Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Issachar Fund.
Diversification Opportunities for Barings Active and Issachar Fund
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barings and Issachar is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class 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 Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Barings Active i.e., Barings Active and Issachar Fund go up and down completely randomly.
Pair Corralation between Barings Active and Issachar Fund
Assuming the 90 days horizon Barings Active is expected to generate 15.74 times less return on investment than Issachar Fund. But when comparing it to its historical volatility, Barings Active Short is 7.63 times less risky than Issachar Fund. It trades about 0.14 of its potential returns per unit of risk. Issachar Fund Class is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 989.00 in Issachar Fund Class on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Issachar Fund Class or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Barings Active Short vs. Issachar Fund Class
Performance |
| Timeline |
| Barings Active Short |
| Issachar Fund Class |
Barings Active and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Issachar Fund
The main advantage of trading using opposite Barings Active and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Barings Active vs. Permanent Portfolio Class | Barings Active vs. HUMANA INC | Barings Active vs. Aquagold International | Barings Active vs. Barloworld Ltd ADR |
| Issachar Fund vs. All Asset Fund | Issachar Fund vs. HUMANA INC | Issachar Fund vs. Aquagold International | Issachar Fund vs. Barloworld Ltd ADR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |