Correlation Between Barings Emerging and Blackrock Lifepth
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Blackrock Lifepth 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 Blackrock Lifepth 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 Blackrock Lifepth Idx, you can compare the effects of market volatilities on Barings Emerging and Blackrock Lifepth 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 Blackrock Lifepth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Blackrock Lifepth.
Diversification Opportunities for Barings Emerging and Blackrock Lifepth
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Blackrock is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Blackrock Lifepth Idx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Lifepth Idx 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 Blackrock Lifepth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Lifepth Idx has no effect on the direction of Barings Emerging i.e., Barings Emerging and Blackrock Lifepth go up and down completely randomly.
Pair Corralation between Barings Emerging and Blackrock Lifepth
Assuming the 90 days horizon Barings Emerging Markets is expected to under-perform the Blackrock Lifepth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Barings Emerging Markets is 1.29 times less risky than Blackrock Lifepth. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Blackrock Lifepth Idx is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,396 in Blackrock Lifepth Idx on September 18, 2024 and sell it today you would earn a total of 17.00 from holding Blackrock Lifepth Idx or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Blackrock Lifepth Idx
Performance |
| Timeline |
| Barings Emerging Markets |
| Blackrock Lifepth Idx |
Barings Emerging and Blackrock Lifepth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Blackrock Lifepth
The main advantage of trading using opposite Barings Emerging and Blackrock Lifepth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Blackrock Lifepth 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 Blackrock Lifepth will offset losses from the drop in Blackrock Lifepth's long position.| Barings Emerging vs. Gmo Resources | Barings Emerging vs. Adams Natural Resources | Barings Emerging vs. Hennessy Bp Energy | Barings Emerging vs. Icon Natural Resources |
| Blackrock Lifepth vs. Calvert Developed Market | Blackrock Lifepth vs. Barings Emerging Markets | Blackrock Lifepth vs. Rbc Emerging Markets | Blackrock Lifepth vs. Locorr Market Trend |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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