Correlation Between Barings Emerging and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Bny Mellon 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 Bny Mellon 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 Bny Mellon Income, you can compare the effects of market volatilities on Barings Emerging and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Bny Mellon.
Diversification Opportunities for Barings Emerging and Bny Mellon
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Bny is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Bny Mellon Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Income 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Income has no effect on the direction of Barings Emerging i.e., Barings Emerging and Bny Mellon go up and down completely randomly.
Pair Corralation between Barings Emerging and Bny Mellon
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.34 times more return on investment than Bny Mellon. However, Barings Emerging Markets is 2.97 times less risky than Bny Mellon. It trades about 0.1 of its potential returns per unit of risk. Bny Mellon Income is currently generating about -0.17 per unit of risk. If you would invest 756.00 in Barings Emerging Markets on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Barings Emerging Markets or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Bny Mellon Income
Performance |
| Timeline |
| Barings Emerging Markets |
| Bny Mellon Income |
Barings Emerging and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Bny Mellon
The main advantage of trading using opposite Barings Emerging and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Barings Active Short | Barings Emerging vs. Barings Global Floating |
| Bny Mellon vs. Siit Emerging Markets | Bny Mellon vs. Mid Cap 15x Strategy | Bny Mellon vs. Angel Oak Multi Strategy | Bny Mellon vs. Origin 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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