Correlation Between Barings Emerging and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Eagle Small 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 Eagle Small 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 Eagle Small Cap, you can compare the effects of market volatilities on Barings Emerging and Eagle Small 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Eagle Small.
Diversification Opportunities for Barings Emerging and Eagle Small
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Eagle is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small 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 Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Barings Emerging i.e., Barings Emerging and Eagle Small go up and down completely randomly.
Pair Corralation between Barings Emerging and Eagle Small
Assuming the 90 days horizon Barings Emerging is expected to generate 121.5 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Barings Emerging Markets is 4.52 times less risky than Eagle Small. It trades about 0.0 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,623 in Eagle Small Cap on September 15, 2024 and sell it today you would earn a total of 11.00 from holding Eagle Small Cap or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Eagle Small Cap
Performance |
| Timeline |
| Barings Emerging Markets |
| Eagle Small Cap |
Barings Emerging and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Eagle Small
The main advantage of trading using opposite Barings Emerging and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small's long position.| Barings Emerging vs. Edward Jones Money | Barings Emerging vs. Chestnut Street Exchange | Barings Emerging vs. Ab Government Exchange | Barings Emerging vs. Cref Money Market |
| Eagle Small vs. Transamerica Emerging Markets | Eagle Small vs. Barings Emerging Markets | Eagle Small vs. Ep Emerging Markets | Eagle Small vs. Eagle Mlp Strategy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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