Correlation Between Barings Global and BGF Euro
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By analyzing existing cross correlation between Barings Global Umbrella and BGF Euro Markets, you can compare the effects of market volatilities on Barings Global and BGF Euro 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 Barings Global with a short position of BGF Euro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and BGF Euro.
Diversification Opportunities for Barings Global and BGF Euro
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Barings and BGF is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Umbrella and BGF Euro Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Euro Markets and Barings 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 Barings Global Umbrella are associated (or correlated) with BGF Euro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Euro Markets has no effect on the direction of Barings Global i.e., Barings Global and BGF Euro go up and down completely randomly.
Pair Corralation between Barings Global and BGF Euro
Assuming the 90 days trading horizon Barings Global is expected to generate 3.32 times less return on investment than BGF Euro. But when comparing it to its historical volatility, Barings Global Umbrella is 1.87 times less risky than BGF Euro. It trades about 0.12 of its potential returns per unit of risk. BGF Euro Markets is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,360 in BGF Euro Markets on September 14, 2024 and sell it today you would earn a total of 167.00 from holding BGF Euro Markets or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barings Global Umbrella vs. BGF Euro Markets
Performance |
| Timeline |
| Barings Global Umbrella |
| BGF Euro Markets |
Barings Global and BGF Euro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and BGF Euro
The main advantage of trading using opposite Barings Global and BGF Euro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, BGF Euro 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 BGF Euro will offset losses from the drop in BGF Euro's long position.| Barings Global vs. Azvalor Global Value | Barings Global vs. JPM Global Natural | Barings Global vs. Cobas Global PP | Barings Global vs. Aberdeen Global Asian |
| BGF Euro vs. Esfera Robotics R | BGF Euro vs. R co Valor F | BGF Euro vs. CM AM Monplus NE | BGF Euro vs. IE00B0H4TS55 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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