Correlation Between Barings Emerging and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Barings Emerging and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Ep Emerging.
Diversification Opportunities for Barings Emerging and Ep Emerging
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and EPEIX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Barings Emerging i.e., Barings Emerging and Ep Emerging go up and down completely randomly.
Pair Corralation between Barings Emerging and Ep Emerging
Assuming the 90 days horizon Barings Emerging is expected to generate 1.81 times less return on investment than Ep Emerging. But when comparing it to its historical volatility, Barings Emerging Markets is 1.95 times less risky than Ep Emerging. It trades about 0.35 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 983.00 in Ep Emerging Markets on November 22, 2024 and sell it today you would earn a total of 36.00 from holding Ep Emerging Markets or generate 3.66% 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. Ep Emerging Markets
Performance |
| Timeline |
| Barings Emerging Markets |
| Ep Emerging Markets |
Barings Emerging and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Ep Emerging
The main advantage of trading using opposite Barings Emerging and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Barings Emerging vs. Federated Muni And | Barings Emerging vs. Pioneer High Yield | Barings Emerging vs. Ab Bond Inflation | Barings Emerging vs. Doubleline Total Return |
| Ep Emerging vs. Touchstone Sands Capital | Ep Emerging vs. Rational Defensive Growth | Ep Emerging vs. Morgan Stanley Institutional | Ep Emerging vs. Multimanager Lifestyle Growth |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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