Correlation Between Barings Emerging and Harbor High
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Harbor High 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 Harbor High 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 Harbor High Yield Bond, you can compare the effects of market volatilities on Barings Emerging and Harbor High 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 Harbor High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Harbor High.
Diversification Opportunities for Barings Emerging and Harbor High
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Harbor is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Harbor High Yield Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor High Yield 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 Harbor High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor High Yield has no effect on the direction of Barings Emerging i.e., Barings Emerging and Harbor High go up and down completely randomly.
Pair Corralation between Barings Emerging and Harbor High
If you would invest 685.00 in Barings Emerging Markets on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Barings Emerging Markets or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Barings Emerging Markets vs. Harbor High Yield Bond
Performance |
| Timeline |
| Barings Emerging Markets |
| Harbor High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Emerging and Harbor High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Harbor High
The main advantage of trading using opposite Barings Emerging and Harbor High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Harbor High 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 Harbor High will offset losses from the drop in Harbor High's long position.| Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. SCOR PK |
| Harbor High vs. Barings Emerging Markets | Harbor High vs. Rbc Emerging Markets | Harbor High vs. Kinetics Market Opportunities | Harbor High vs. Shelton Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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