Correlation Between Siit Equity and Barings Active
Can any of the company-specific risk be diversified away by investing in both Siit Equity 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 Siit Equity and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Equity Factor and Barings Active Short, you can compare the effects of market volatilities on Siit Equity 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 Siit Equity with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Equity and Barings Active.
Diversification Opportunities for Siit Equity and Barings Active
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Barings is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Siit Equity Factor 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 Siit Equity 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 Siit Equity Factor 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 Siit Equity i.e., Siit Equity and Barings Active go up and down completely randomly.
Pair Corralation between Siit Equity and Barings Active
Assuming the 90 days horizon Siit Equity Factor is expected to generate 6.69 times more return on investment than Barings Active. However, Siit Equity is 6.69 times more volatile than Barings Active Short. It trades about 0.16 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.21 per unit of risk. If you would invest 1,464 in Siit Equity Factor on October 24, 2024 and sell it today you would earn a total of 33.00 from holding Siit Equity Factor or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Equity Factor vs. Barings Active Short
Performance |
| Timeline |
| Siit Equity Factor |
| Barings Active Short |
Siit Equity and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Equity and Barings Active
The main advantage of trading using opposite Siit Equity and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Equity 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.| Siit Equity vs. Fwnhtx | Siit Equity vs. Wmcapx | Siit Equity vs. Leggmason Partners Institutional | Siit Equity vs. Abr 7525 Volatility |
| Barings Active vs. Greenspring Fund Retail | Barings Active vs. Siit Equity Factor | Barings Active vs. Old Westbury Fixed | Barings Active vs. Gmo Global Equity |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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