Correlation Between Harbor High-yield and Barings Active
Can any of the company-specific risk be diversified away by investing in both Harbor High-yield 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 Harbor High-yield and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor High Yield Bond and Barings Active Short, you can compare the effects of market volatilities on Harbor High-yield 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 Harbor High-yield with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor High-yield and Barings Active.
Diversification Opportunities for Harbor High-yield and Barings Active
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harbor and Barings is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Harbor High Yield Bond 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 Harbor High-yield 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 Harbor High Yield Bond 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 Harbor High-yield i.e., Harbor High-yield and Barings Active go up and down completely randomly.
Pair Corralation between Harbor High-yield and Barings Active
If you would invest 923.00 in Barings Active Short on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Barings Active Short or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Harbor High Yield Bond vs. Barings Active Short
Performance |
| Timeline |
| Harbor High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barings Active Short |
Harbor High-yield and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor High-yield and Barings Active
The main advantage of trading using opposite Harbor High-yield and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor High-yield 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.| Harbor High-yield vs. Chartwell Small Cap | Harbor High-yield vs. The Hartford Small | Harbor High-yield vs. Touchstone Small Cap | Harbor High-yield vs. Small Pany Growth |
| Barings Active vs. Ab Bond Inflation | Barings Active vs. Western Asset Inflation | Barings Active vs. Blackrock Inflation Protected | Barings Active vs. Aqr Managed Futures |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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