Correlation Between Barings Emerging and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Cohen Steers 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 Cohen Steers 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 Cohen Steers Low, you can compare the effects of market volatilities on Barings Emerging and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Cohen Steers.
Diversification Opportunities for Barings Emerging and Cohen Steers
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barings and Cohen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Low has no effect on the direction of Barings Emerging i.e., Barings Emerging and Cohen Steers go up and down completely randomly.
Pair Corralation between Barings Emerging and Cohen Steers
Assuming the 90 days horizon Barings Emerging Markets is expected to under-perform the Cohen Steers. In addition to that, Barings Emerging is 3.27 times more volatile than Cohen Steers Low. It trades about -0.02 of its total potential returns per unit of risk. Cohen Steers Low is currently generating about 0.23 per unit of volatility. If you would invest 938.00 in Cohen Steers Low on October 23, 2024 and sell it today you would earn a total of 7.00 from holding Cohen Steers Low or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Cohen Steers Low
Performance |
| Timeline |
| Barings Emerging Markets |
| Cohen Steers Low |
Barings Emerging and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Cohen Steers
The main advantage of trading using opposite Barings Emerging and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Barings Emerging vs. Deutsche Gold Precious | Barings Emerging vs. Sprott Gold Equity | Barings Emerging vs. First Eagle Gold | Barings Emerging vs. Fidelity Advisor Gold |
| Cohen Steers vs. Vanguard Emerging Markets | Cohen Steers vs. Wcm Focused Emerging | Cohen Steers vs. Boston Partners Emerging | Cohen Steers vs. Barings 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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