Correlation Between Cmg Ultra and Barings Active
Can any of the company-specific risk be diversified away by investing in both Cmg Ultra 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 Cmg Ultra and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cmg Ultra Short and Barings Active Short, you can compare the effects of market volatilities on Cmg Ultra 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 Cmg Ultra with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cmg Ultra and Barings Active.
Diversification Opportunities for Cmg Ultra and Barings Active
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cmg and Barings is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Cmg Ultra Short 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 Cmg Ultra 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 Cmg Ultra Short 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 Cmg Ultra i.e., Cmg Ultra and Barings Active go up and down completely randomly.
Pair Corralation between Cmg Ultra and Barings Active
Assuming the 90 days horizon Cmg Ultra Short is expected to generate 0.82 times more return on investment than Barings Active. However, Cmg Ultra Short is 1.22 times less risky than Barings Active. It trades about 0.24 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.14 per unit of risk. If you would invest 914.00 in Cmg Ultra Short on October 29, 2024 and sell it today you would earn a total of 13.00 from holding Cmg Ultra Short or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cmg Ultra Short vs. Barings Active Short
Performance |
| Timeline |
| Cmg Ultra Short |
| Barings Active Short |
Cmg Ultra and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cmg Ultra and Barings Active
The main advantage of trading using opposite Cmg Ultra and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cmg Ultra 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.| Cmg Ultra vs. Transamerica Intermediate Muni | Cmg Ultra vs. Inverse Government Long | Cmg Ultra vs. T Rowe Price | Cmg Ultra vs. Morningstar Municipal Bond |
| Barings Active vs. Dunham High Yield | Barings Active vs. Fidelity Capital Income | Barings Active vs. Lord Abbett Short | Barings Active vs. Artisan High Income |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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