Correlation Between Barings Emerging and Cullen High
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Cullen High 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 Cullen High 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 Cullen High Dividend, you can compare the effects of market volatilities on Barings Emerging and Cullen High 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 Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Cullen High.
Diversification Opportunities for Barings Emerging and Cullen High
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barings and Cullen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend 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 Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Barings Emerging i.e., Barings Emerging and Cullen High go up and down completely randomly.
Pair Corralation between Barings Emerging and Cullen High
Assuming the 90 days horizon Barings Emerging is expected to generate 15.13 times less return on investment than Cullen High. But when comparing it to its historical volatility, Barings Emerging Markets is 1.81 times less risky than Cullen High. It trades about 0.02 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,488 in Cullen High Dividend on September 4, 2024 and sell it today you would earn a total of 32.00 from holding Cullen High Dividend or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Cullen High Dividend
Performance |
| Timeline |
| Barings Emerging Markets |
| Cullen High Dividend |
Barings Emerging and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Cullen High
The main advantage of trading using opposite Barings Emerging and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.| Barings Emerging vs. T Rowe Price | Barings Emerging vs. Volumetric Fund Volumetric | Barings Emerging vs. Rbb Fund | Barings Emerging vs. T Rowe Price |
| Cullen High vs. Cullen Small Cap | Cullen High vs. Cullen Small Cap | Cullen High vs. Cullen Small Cap | Cullen High vs. Cullen Value Fund |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |