Correlation Between Multimanager Lifestyle and Barings Us

Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Barings Us 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 Multimanager Lifestyle and Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multimanager Lifestyle Growth and Barings High Yield, you can compare the effects of market volatilities on Multimanager Lifestyle and Barings Us 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 Multimanager Lifestyle with a short position of Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Barings Us.

Diversification Opportunities for Multimanager Lifestyle and Barings Us

0.0

Correlation Coefficient

Multimanager Lifestyle  Barings Us

Pay attention - limited upside

The 3 months correlation between Multimanager and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Growth and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield and Multimanager Lifestyle 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 Multimanager Lifestyle Growth are associated (or correlated) with Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Barings Us go up and down completely randomly.

Pair Corralation between Multimanager Lifestyle and Barings Us

If you would invest  0.00  in Multimanager Lifestyle Growth on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Multimanager Lifestyle Growth or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Multimanager Lifestyle Growth  vs.  Barings High Yield

Multimanager Lifestyle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multimanager Lifestyle Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Multimanager Lifestyle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Barings High Yield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barings High Yield has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Barings Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Multimanager Lifestyle and Barings Us

The main advantage of trading using opposite Multimanager Lifestyle and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle position performs unexpectedly, Barings Us 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 Us will offset losses from the drop in Barings Us' long position.

The idea behind Multimanager Lifestyle Growth and Barings High Yield pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.