Correlation Between Barings Us and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Barings Us and Ambrus Core 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 Us and Ambrus Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Ambrus Core Bond, you can compare the effects of market volatilities on Barings Us and Ambrus Core 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 Us with a short position of Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Ambrus Core.
Diversification Opportunities for Barings Us and Ambrus Core
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Ambrus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond and Barings Us 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 High Yield are associated (or correlated) with Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Barings Us i.e., Barings Us and Ambrus Core go up and down completely randomly.
Pair Corralation between Barings Us and Ambrus Core
Assuming the 90 days horizon Barings High Yield is expected to generate 0.97 times more return on investment than Ambrus Core. However, Barings High Yield is 1.03 times less risky than Ambrus Core. It trades about 0.21 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.11 per unit of risk. If you would invest 752.00 in Barings High Yield on October 12, 2024 and sell it today you would earn a total of 59.00 from holding Barings High Yield or generate 7.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings High Yield vs. Ambrus Core Bond
Performance |
| Timeline |
| Barings High Yield |
| Ambrus Core Bond |
Barings Us and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Ambrus Core
The main advantage of trading using opposite Barings Us and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Barings Us vs. Amg Managers Centersquare | Barings Us vs. Jhancock Real Estate | Barings Us vs. Nexpoint Real Estate | Barings Us vs. Redwood Real Estate |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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