Correlation Between Barings Active and Rbc Bluebay
Can any of the company-specific risk be diversified away by investing in both Barings Active and Rbc Bluebay 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 Rbc Bluebay 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 Rbc Bluebay Emerging, you can compare the effects of market volatilities on Barings Active and Rbc Bluebay 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 Rbc Bluebay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Rbc Bluebay.
Diversification Opportunities for Barings Active and Rbc Bluebay
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Rbc is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Rbc Bluebay Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Bluebay Emerging 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 Rbc Bluebay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Bluebay Emerging has no effect on the direction of Barings Active i.e., Barings Active and Rbc Bluebay go up and down completely randomly.
Pair Corralation between Barings Active and Rbc Bluebay
Assuming the 90 days horizon Barings Active is expected to generate 1.75 times less return on investment than Rbc Bluebay. But when comparing it to its historical volatility, Barings Active Short is 2.77 times less risky than Rbc Bluebay. It trades about 0.19 of its potential returns per unit of risk. Rbc Bluebay Emerging is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Rbc Bluebay Emerging on September 2, 2024 and sell it today you would earn a total of 142.00 from holding Rbc Bluebay Emerging or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Rbc Bluebay Emerging
Performance |
| Timeline |
| Barings Active Short |
| Rbc Bluebay Emerging |
Barings Active and Rbc Bluebay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Rbc Bluebay
The main advantage of trading using opposite Barings Active and Rbc Bluebay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Rbc Bluebay 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 Rbc Bluebay will offset losses from the drop in Rbc Bluebay'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 |
| Rbc Bluebay vs. Rbc Small Cap | Rbc Bluebay vs. Rbc Enterprise Fund | Rbc Bluebay vs. Rbc Enterprise Fund | Rbc Bluebay vs. Rbc Emerging Markets |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |