Correlation Between Barings Emerging and Voya International
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Voya International 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 Voya International 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 Voya International Index, you can compare the effects of market volatilities on Barings Emerging and Voya International 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 Voya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Voya International.
Diversification Opportunities for Barings Emerging and Voya International
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Voya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index 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 Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Barings Emerging i.e., Barings Emerging and Voya International go up and down completely randomly.
Pair Corralation between Barings Emerging and Voya International
Assuming the 90 days horizon Barings Emerging is expected to generate 2.39 times less return on investment than Voya International. But when comparing it to its historical volatility, Barings Emerging Markets is 2.95 times less risky than Voya International. It trades about 0.23 of its potential returns per unit of risk. Voya International Index is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Voya International Index on November 27, 2024 and sell it today you would earn a total of 33.00 from holding Voya International Index or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Voya International Index
Performance |
| Timeline |
| Barings Emerging Markets |
| Voya International Index |
Barings Emerging and Voya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Voya International
The main advantage of trading using opposite Barings Emerging and Voya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Voya International 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 Voya International will offset losses from the drop in Voya International's long position.| Barings Emerging vs. Rbc Emerging Markets | Barings Emerging vs. Templeton Developing Markets | Barings Emerging vs. Locorr Market Trend | Barings Emerging vs. Calvert Developed Market |
| Voya International vs. Qs Growth Fund | Voya International vs. Morgan Stanley Institutional | Voya International vs. L Mason Qs | Voya International vs. Profunds Large Cap 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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