Correlation Between NYSE Composite and Barings Active
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Barings Active Short, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Barings Active.
Diversification Opportunities for NYSE Composite and Barings Active
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Barings is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Barings Active go up and down completely randomly.
Pair Corralation between NYSE Composite and Barings Active
If you would invest 868.00 in Barings Active Short on February 2, 2024 and sell it today you would earn a total of 0.00 from holding Barings Active Short or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
NYSE Composite vs. Barings Active Short
Performance |
Timeline |
NYSE Composite and Barings Active Volatility Contrast
Predicted Return Density |
Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Barings Active Short
Pair trading matchups for Barings Active
Pair Trading with NYSE Composite and Barings Active
The main advantage of trading using opposite NYSE Composite and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.NYSE Composite vs. NI Holdings | NYSE Composite vs. Mattel Inc | NYSE Composite vs. Parker Hannifin | NYSE Composite vs. Artisan Partners Asset |
Barings Active vs. Atac Inflation Rotation | Barings Active vs. Fs Managed Futures | Barings Active vs. Arrow Managed Futures | Barings Active vs. Guggenheim 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Stocks Directory Find actively traded stocks across global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |