Correlation Between Victory High and Barings Active
Can any of the company-specific risk be diversified away by investing in both Victory High 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 Victory High and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory High Income and Barings Active Short, you can compare the effects of market volatilities on Victory High 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 Victory High with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory High and Barings Active.
Diversification Opportunities for Victory High and Barings Active
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Victory and Barings is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Victory High Income 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 Victory High 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 Victory High Income 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 Victory High i.e., Victory High and Barings Active go up and down completely randomly.
Pair Corralation between Victory High and Barings Active
Assuming the 90 days horizon Victory High Income is expected to generate 3.02 times more return on investment than Barings Active. However, Victory High is 3.02 times more volatile than Barings Active Short. It trades about 0.1 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.22 per unit of risk. If you would invest 902.00 in Victory High Income on November 28, 2024 and sell it today you would earn a total of 62.00 from holding Victory High Income or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory High Income vs. Barings Active Short
Performance |
| Timeline |
| Victory High Income |
| Barings Active Short |
Victory High and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory High and Barings Active
The main advantage of trading using opposite Victory High and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory High 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.| Victory High vs. Multimanager Lifestyle Growth | Victory High vs. T Rowe Price | Victory High vs. Jpmorgan Large Cap | Victory High vs. Transamerica Asset Allocation |
| Barings Active vs. Franklin Federal Limited Term | Barings Active vs. Metropolitan West Ultra | Barings Active vs. Jhancock Diversified Macro | Barings Active vs. Investec Emerging Markets |
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 CEOs Directory module to screen CEOs from public companies around the world.
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