Correlation Between Barings Emerging and Gabelli Media
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Gabelli Media 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 Gabelli Media 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 Gabelli Media Mogul, you can compare the effects of market volatilities on Barings Emerging and Gabelli Media 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 Gabelli Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Gabelli Media.
Diversification Opportunities for Barings Emerging and Gabelli Media
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Gabelli is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Gabelli Media Mogul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Media Mogul 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 Gabelli Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Media Mogul has no effect on the direction of Barings Emerging i.e., Barings Emerging and Gabelli Media go up and down completely randomly.
Pair Corralation between Barings Emerging and Gabelli Media
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.24 times more return on investment than Gabelli Media. However, Barings Emerging Markets is 4.16 times less risky than Gabelli Media. It trades about -0.08 of its potential returns per unit of risk. Gabelli Media Mogul is currently generating about -0.07 per unit of risk. If you would invest 761.00 in Barings Emerging Markets on September 12, 2024 and sell it today you would lose (3.00) from holding Barings Emerging Markets or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Gabelli Media Mogul
Performance |
| Timeline |
| Barings Emerging Markets |
| Gabelli Media Mogul |
Barings Emerging and Gabelli Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Gabelli Media
The main advantage of trading using opposite Barings Emerging and Gabelli Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Gabelli Media 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 Gabelli Media will offset losses from the drop in Gabelli Media's long position.| Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. SCOR PK |
| Gabelli Media vs. Gamco Global Telecommunications | Gabelli Media vs. The National Tax Free | Gabelli Media vs. Baird Strategic Municipal | Gabelli Media vs. Oklahoma Municipal Fund |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |