Correlation Between Barings Emerging and Mainstay Candriam
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Mainstay Candriam 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 Mainstay Candriam 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 Mainstay Candriam Emerging, you can compare the effects of market volatilities on Barings Emerging and Mainstay Candriam 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 Mainstay Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Mainstay Candriam.
Diversification Opportunities for Barings Emerging and Mainstay Candriam
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Mainstay Candriam Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Candriam 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 Mainstay Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Candriam has no effect on the direction of Barings Emerging i.e., Barings Emerging and Mainstay Candriam go up and down completely randomly.
Pair Corralation between Barings Emerging and Mainstay Candriam
Assuming the 90 days horizon Barings Emerging is expected to generate 1.05 times less return on investment than Mainstay Candriam. But when comparing it to its historical volatility, Barings Emerging Markets is 2.73 times less risky than Mainstay Candriam. It trades about 0.07 of its potential returns per unit of risk. Mainstay Candriam Emerging is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Mainstay Candriam Emerging on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Candriam Emerging or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Barings Emerging Markets vs. Mainstay Candriam Emerging
Performance |
| Timeline |
| Barings Emerging Markets |
| Mainstay Candriam |
Barings Emerging and Mainstay Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Mainstay Candriam
The main advantage of trading using opposite Barings Emerging and Mainstay Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Mainstay Candriam 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 Mainstay Candriam will offset losses from the drop in Mainstay Candriam's long position.| Barings Emerging vs. Artisan High Income | Barings Emerging vs. Federated Ohio Municipal | Barings Emerging vs. Versatile Bond Portfolio | Barings Emerging vs. Ambrus Core Bond |
| Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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