Correlation Between IE00B0H4TS55 and BARINGS LATIN

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Can any of the company-specific risk be diversified away by investing in both IE00B0H4TS55 and BARINGS LATIN 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 IE00B0H4TS55 and BARINGS LATIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IE00B0H4TS55 and BARINGS LATIN AMERICA, you can compare the effects of market volatilities on IE00B0H4TS55 and BARINGS LATIN 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 LATIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and BARINGS LATIN.

Diversification Opportunities for IE00B0H4TS55 and BARINGS LATIN

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between IE00B0H4TS55 and BARINGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 and BARINGS LATIN AMERICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARINGS LATIN AMERICA 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 LATIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARINGS LATIN AMERICA has no effect on the direction of IE00B0H4TS55 i.e., IE00B0H4TS55 and BARINGS LATIN go up and down completely randomly.

Pair Corralation between IE00B0H4TS55 and BARINGS LATIN

If you would invest  18,547  in IE00B0H4TS55 on September 4, 2024 and sell it today you would earn a total of  125.00  from holding IE00B0H4TS55 or generate 0.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

IE00B0H4TS55  vs.  BARINGS LATIN AMERICA

 Performance 
       Timeline  
IE00B0H4TS55 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days IE00B0H4TS55 has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, IE00B0H4TS55 is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
BARINGS LATIN AMERICA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BARINGS LATIN AMERICA has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, BARINGS LATIN is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

IE00B0H4TS55 and BARINGS LATIN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IE00B0H4TS55 and BARINGS LATIN

The main advantage of trading using opposite IE00B0H4TS55 and BARINGS LATIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 position performs unexpectedly, BARINGS LATIN 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 LATIN will offset losses from the drop in BARINGS LATIN's long position.
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The idea behind IE00B0H4TS55 and BARINGS LATIN AMERICA 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.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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