Correlation Between Barings Emerging and Anchor Risk
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Anchor Risk 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 Anchor Risk 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 Anchor Risk Managed, you can compare the effects of market volatilities on Barings Emerging and Anchor Risk 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 Anchor Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Anchor Risk.
Diversification Opportunities for Barings Emerging and Anchor Risk
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Anchor is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Anchor Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Risk Managed 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 Anchor Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Risk Managed has no effect on the direction of Barings Emerging i.e., Barings Emerging and Anchor Risk go up and down completely randomly.
Pair Corralation between Barings Emerging and Anchor Risk
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.98 times more return on investment than Anchor Risk. However, Barings Emerging Markets is 1.02 times less risky than Anchor Risk. It trades about 0.08 of its potential returns per unit of risk. Anchor Risk Managed is currently generating about 0.04 per unit of risk. If you would invest 672.00 in Barings Emerging Markets on August 26, 2024 and sell it today you would earn a total of 84.00 from holding Barings Emerging Markets or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Anchor Risk Managed
Performance |
| Timeline |
| Barings Emerging Markets |
| Anchor Risk Managed |
Barings Emerging and Anchor Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Anchor Risk
The main advantage of trading using opposite Barings Emerging and Anchor Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Anchor Risk 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 Anchor Risk will offset losses from the drop in Anchor Risk's long position.| Barings Emerging vs. Jhancock Short Duration | Barings Emerging vs. Maryland Short Term Tax Free | Barings Emerging vs. Locorr Longshort Modities | Barings Emerging vs. Ab Select Longshort |
| Anchor Risk vs. Pace International Emerging | Anchor Risk vs. Pnc Emerging Markets | Anchor Risk vs. Shelton Emerging Markets | Anchor Risk vs. Barings Emerging Markets |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |