Correlation Between Barings Emerging and Guidemark Large
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Guidemark Large 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 Guidemark Large 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 Guidemark Large Cap, you can compare the effects of market volatilities on Barings Emerging and Guidemark Large 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 Guidemark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Guidemark Large.
Diversification Opportunities for Barings Emerging and Guidemark Large
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Guidemark is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Guidemark Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidemark Large Cap 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 Guidemark Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidemark Large Cap has no effect on the direction of Barings Emerging i.e., Barings Emerging and Guidemark Large go up and down completely randomly.
Pair Corralation between Barings Emerging and Guidemark Large
Assuming the 90 days horizon Barings Emerging is expected to generate 1.77 times less return on investment than Guidemark Large. But when comparing it to its historical volatility, Barings Emerging Markets is 2.21 times less risky than Guidemark Large. It trades about 0.07 of its potential returns per unit of risk. Guidemark Large Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Guidemark Large Cap on September 14, 2024 and sell it today you would earn a total of 221.00 from holding Guidemark Large Cap or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Guidemark Large Cap
Performance |
| Timeline |
| Barings Emerging Markets |
| Guidemark Large Cap |
Barings Emerging and Guidemark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Guidemark Large
The main advantage of trading using opposite Barings Emerging and Guidemark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Guidemark Large 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 Guidemark Large will offset losses from the drop in Guidemark Large's long position.| Barings Emerging vs. Clearbridge Energy Mlp | Barings Emerging vs. Dreyfus Natural Resources | Barings Emerging vs. Jennison Natural Resources | Barings Emerging vs. Calvert Global Energy |
| Guidemark Large vs. Tax Free Conservative Income | Guidemark Large vs. Wilmington Diversified Income | Guidemark Large vs. Federated Hermes Conservative | Guidemark Large vs. Fulcrum Diversified Absolute |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |