Correlation Between IE00B0H4TS55 and BARINGS EASTERN
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By analyzing existing cross correlation between IE00B0H4TS55 and BARINGS EASTERN EUROPE, you can compare the effects of market volatilities on IE00B0H4TS55 and BARINGS EASTERN 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 IE00B0H4TS55 with a short position of BARINGS EASTERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and BARINGS EASTERN.
Diversification Opportunities for IE00B0H4TS55 and BARINGS EASTERN
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IE00B0H4TS55 and BARINGS is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 and BARINGS EASTERN EUROPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARINGS EASTERN EUROPE and IE00B0H4TS55 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 IE00B0H4TS55 are associated (or correlated) with BARINGS EASTERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARINGS EASTERN EUROPE has no effect on the direction of IE00B0H4TS55 i.e., IE00B0H4TS55 and BARINGS EASTERN go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and BARINGS EASTERN
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to generate 1.24 times less return on investment than BARINGS EASTERN. But when comparing it to its historical volatility, IE00B0H4TS55 is 3.76 times less risky than BARINGS EASTERN. It trades about 0.1 of its potential returns per unit of risk. BARINGS EASTERN EUROPE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,761 in BARINGS EASTERN EUROPE on September 4, 2024 and sell it today you would earn a total of 192.00 from holding BARINGS EASTERN EUROPE or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.4% |
| Values | Daily Returns |
IE00B0H4TS55 vs. BARINGS EASTERN EUROPE
Performance |
| Timeline |
| IE00B0H4TS55 |
| BARINGS EASTERN EUROPE |
IE00B0H4TS55 and BARINGS EASTERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IE00B0H4TS55 and BARINGS EASTERN
The main advantage of trading using opposite IE00B0H4TS55 and BARINGS EASTERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 position performs unexpectedly, BARINGS EASTERN 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 EASTERN will offset losses from the drop in BARINGS EASTERN's long position.| IE00B0H4TS55 vs. BBVA Telecomunicaciones PP | IE00B0H4TS55 vs. Nova Europe ISR | IE00B0H4TS55 vs. R co Thematic Silver | IE00B0H4TS55 vs. Renaissance Europe C |
| BARINGS EASTERN vs. BARINGS LATIN AMERICA | BARINGS EASTERN vs. Esfera Robotics R | BARINGS EASTERN vs. R co Valor F | BARINGS EASTERN vs. CM AM Monplus NE |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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