Correlation Between CM AM and BARINGS LATIN
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By analyzing existing cross correlation between CM AM Monplus NE and BARINGS LATIN AMERICA, you can compare the effects of market volatilities on CM AM 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 CM AM with a short position of BARINGS LATIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM AM and BARINGS LATIN.
Diversification Opportunities for CM AM and BARINGS LATIN
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 0P0001F96C and BARINGS is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding CM AM Monplus NE 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 CM AM 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 CM AM Monplus NE 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 CM AM i.e., CM AM and BARINGS LATIN go up and down completely randomly.
Pair Corralation between CM AM and BARINGS LATIN
Assuming the 90 days trading horizon CM AM Monplus NE is expected to generate 0.01 times more return on investment than BARINGS LATIN. However, CM AM Monplus NE is 160.34 times less risky than BARINGS LATIN. It trades about 1.31 of its potential returns per unit of risk. BARINGS LATIN AMERICA is currently generating about -0.04 per unit of risk. If you would invest 10,583 in CM AM Monplus NE on September 4, 2024 and sell it today you would earn a total of 26.00 from holding CM AM Monplus NE or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CM AM Monplus NE vs. BARINGS LATIN AMERICA
Performance |
| Timeline |
| CM AM Monplus |
| BARINGS LATIN AMERICA |
CM AM and BARINGS LATIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM AM and BARINGS LATIN
The main advantage of trading using opposite CM AM and BARINGS LATIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM AM 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.The idea behind CM AM Monplus NE 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.| BARINGS LATIN vs. Groupama Entreprises N | BARINGS LATIN vs. Renaissance Europe C | BARINGS LATIN vs. Superior Plus Corp | BARINGS LATIN vs. Origin Agritech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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