Correlation Between Barings Emerging and Fidelity Summer
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Fidelity Summer 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 Barings Emerging and Fidelity Summer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Fidelity Summer Street, you can compare the effects of market volatilities on Barings Emerging and Fidelity Summer 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 Emerging with a short position of Fidelity Summer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Fidelity Summer.
Diversification Opportunities for Barings Emerging and Fidelity Summer
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Fidelity is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Fidelity Summer Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Summer Street and Barings Emerging 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 Emerging Markets are associated (or correlated) with Fidelity Summer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Summer Street has no effect on the direction of Barings Emerging i.e., Barings Emerging and Fidelity Summer go up and down completely randomly.
Pair Corralation between Barings Emerging and Fidelity Summer
If you would invest 735.00 in Barings Emerging Markets on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Barings Emerging Markets or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Barings Emerging Markets vs. Fidelity Summer Street
Performance |
| Timeline |
| Barings Emerging Markets |
| Fidelity Summer Street |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Emerging and Fidelity Summer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Fidelity Summer
The main advantage of trading using opposite Barings Emerging and Fidelity Summer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Fidelity Summer 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 Fidelity Summer will offset losses from the drop in Fidelity Summer's long position.| Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Global Floating |
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.
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