Correlation Between Barings Emerging and Salient Em
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Salient Em 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 Salient Em 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 Salient Em Porate, you can compare the effects of market volatilities on Barings Emerging and Salient Em 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 Salient Em. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Salient Em.
Diversification Opportunities for Barings Emerging and Salient Em
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Barings and Salient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Salient Em Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Em Porate 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 Salient Em. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Em Porate has no effect on the direction of Barings Emerging i.e., Barings Emerging and Salient Em go up and down completely randomly.
Pair Corralation between Barings Emerging and Salient Em
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Salient Em Porate
Performance |
| Timeline |
| Barings Emerging Markets |
| Salient Em Porate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Emerging and Salient Em Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Salient Em
The main advantage of trading using opposite Barings Emerging and Salient Em positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Salient Em 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 Salient Em will offset losses from the drop in Salient Em'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 |
| Salient Em vs. Icon Natural Resources | Salient Em vs. Fidelity Advisor Energy | Salient Em vs. World Energy Fund | Salient Em vs. Ivy Energy 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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