Correlation Between Barings Emerging and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Mutual Of 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 Mutual Of 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 Mutual Of America, you can compare the effects of market volatilities on Barings Emerging and Mutual Of 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 Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Mutual Of.
Diversification Opportunities for Barings Emerging and Mutual Of
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Barings and Mutual is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America 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 Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Barings Emerging i.e., Barings Emerging and Mutual Of go up and down completely randomly.
Pair Corralation between Barings Emerging and Mutual Of
Assuming the 90 days horizon Barings Emerging is expected to generate 1.63 times less return on investment than Mutual Of. But when comparing it to its historical volatility, Barings Emerging Markets is 1.35 times less risky than Mutual Of. It trades about 0.06 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,237 in Mutual Of America on September 2, 2024 and sell it today you would earn a total of 193.00 from holding Mutual Of America or generate 15.6% 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. Mutual Of America
Performance |
| Timeline |
| Barings Emerging Markets |
| Mutual Of America |
Barings Emerging and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Mutual Of
The main advantage of trading using opposite Barings Emerging and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's 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 |
| Mutual Of vs. Tax Managed Large Cap | Mutual Of vs. Old Westbury Large | Mutual Of vs. Strategic Allocation Aggressive | Mutual Of vs. Aqr 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |