Correlation Between Barings Global and Barings Active
Can any of the company-specific risk be diversified away by investing in both Barings Global and Barings Active 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 Global and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Credit and Barings Active Short, you can compare the effects of market volatilities on Barings Global and Barings Active 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 Global with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Barings Active.
Diversification Opportunities for Barings Global and Barings Active
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Credit and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short and Barings Global 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 Global Credit are associated (or correlated) with Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Barings Global i.e., Barings Global and Barings Active go up and down completely randomly.
Pair Corralation between Barings Global and Barings Active
If you would invest 671.00 in Barings Global Credit on September 1, 2024 and sell it today you would earn a total of 104.00 from holding Barings Global Credit or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Barings Global Credit vs. Barings Active Short
Performance |
| Timeline |
| Barings Global Credit |
| Barings Active Short |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Global and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Barings Active
The main advantage of trading using opposite Barings Global and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Barings Global vs. Deutsche Real Estate | Barings Global vs. Great West Real Estate | Barings Global vs. Fidelity Real Estate | Barings Global vs. Amg Managers Centersquare |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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