Correlation Between Barings Emerging and Marsico Focus
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Marsico Focus 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 Marsico Focus 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 Marsico Focus, you can compare the effects of market volatilities on Barings Emerging and Marsico Focus 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 Marsico Focus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Marsico Focus.
Diversification Opportunities for Barings Emerging and Marsico Focus
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Marsico is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Marsico Focus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Focus 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 Marsico Focus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Focus has no effect on the direction of Barings Emerging i.e., Barings Emerging and Marsico Focus go up and down completely randomly.
Pair Corralation between Barings Emerging and Marsico Focus
Assuming the 90 days horizon Barings Emerging is expected to generate 5.14 times less return on investment than Marsico Focus. But when comparing it to its historical volatility, Barings Emerging Markets is 2.95 times less risky than Marsico Focus. It trades about 0.06 of its potential returns per unit of risk. Marsico Focus is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,019 in Marsico Focus on September 2, 2024 and sell it today you would earn a total of 1,148 from holding Marsico Focus or generate 56.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Marsico Focus
Performance |
| Timeline |
| Barings Emerging Markets |
| Marsico Focus |
Barings Emerging and Marsico Focus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Marsico Focus
The main advantage of trading using opposite Barings Emerging and Marsico Focus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Marsico Focus 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 Marsico Focus will offset losses from the drop in Marsico Focus' long position.| Barings Emerging vs. Vy Goldman Sachs | Barings Emerging vs. Oppenheimer Gold Special | Barings Emerging vs. Gabelli Gold Fund | Barings Emerging vs. James Balanced Golden |
| Marsico Focus vs. Prudential Health Sciences | Marsico Focus vs. Alger Health Sciences | Marsico Focus vs. Deutsche Health And | Marsico Focus vs. Hartford Healthcare Hls |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |