Correlation Between Pace Global and Barings Active
Can any of the company-specific risk be diversified away by investing in both Pace 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 Pace 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 Pace Global Real and Barings Active Short, you can compare the effects of market volatilities on Pace 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 Pace Global with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Global and Barings Active.
Diversification Opportunities for Pace Global and Barings Active
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pace and Barings is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pace Global Real 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 Pace 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 Pace Global Real 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 Pace Global i.e., Pace Global and Barings Active go up and down completely randomly.
Pair Corralation between Pace Global and Barings Active
Assuming the 90 days horizon Pace Global is expected to generate 1.92 times less return on investment than Barings Active. In addition to that, Pace Global is 6.25 times more volatile than Barings Active Short. It trades about 0.02 of its total potential returns per unit of risk. Barings Active Short is currently generating about 0.22 per unit of volatility. If you would invest 860.00 in Barings Active Short on September 12, 2024 and sell it today you would earn a total of 66.00 from holding Barings Active Short or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Global Real vs. Barings Active Short
Performance |
| Timeline |
| Pace Global Real |
| Barings Active Short |
Pace Global and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Global and Barings Active
The main advantage of trading using opposite Pace Global and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace 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.| Pace Global vs. Barings Active Short | Pace Global vs. Lord Abbett Short | Pace Global vs. Easterly Snow Longshort | Pace Global vs. Blackrock Short Term Inflat Protected |
| Barings Active vs. SCOR PK | Barings Active vs. Morningstar Unconstrained Allocation | Barings Active vs. Via Renewables | Barings Active vs. Bondbloxx ETF Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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