Correlation Between Barings Emerging and First Eagle
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and First Eagle 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 First Eagle 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 First Eagle Gold, you can compare the effects of market volatilities on Barings Emerging and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and First Eagle.
Diversification Opportunities for Barings Emerging and First Eagle
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and First is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Barings Emerging i.e., Barings Emerging and First Eagle go up and down completely randomly.
Pair Corralation between Barings Emerging and First Eagle
If you would invest 758.00 in Barings Emerging Markets on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Barings Emerging Markets or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Barings Emerging Markets vs. First Eagle Gold
Performance |
| Timeline |
| Barings Emerging Markets |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Emerging and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and First Eagle
The main advantage of trading using opposite Barings Emerging and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Barings Emerging vs. Artisan High Income | Barings Emerging vs. Federated Ohio Municipal | Barings Emerging vs. Versatile Bond Portfolio | Barings Emerging vs. Ambrus Core Bond |
| First Eagle vs. Ep Emerging Markets | First Eagle vs. Ab All Market | First Eagle vs. Barings Emerging Markets | First Eagle vs. Aqr Long Short Equity |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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