Correlation Between Barings Emerging and Oakmark Global
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Oakmark Global 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 Oakmark Global 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 Oakmark Global Select, you can compare the effects of market volatilities on Barings Emerging and Oakmark Global 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 Oakmark Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Oakmark Global.
Diversification Opportunities for Barings Emerging and Oakmark Global
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Oakmark is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Oakmark Global Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Global Select 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 Oakmark Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Global Select has no effect on the direction of Barings Emerging i.e., Barings Emerging and Oakmark Global go up and down completely randomly.
Pair Corralation between Barings Emerging and Oakmark Global
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.37 times more return on investment than Oakmark Global. However, Barings Emerging Markets is 2.72 times less risky than Oakmark Global. It trades about 0.09 of its potential returns per unit of risk. Oakmark Global Select is currently generating about -0.03 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Oakmark Global Select
Performance |
| Timeline |
| Barings Emerging Markets |
| Oakmark Global Select |
Barings Emerging and Oakmark Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Oakmark Global
The main advantage of trading using opposite Barings Emerging and Oakmark Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Oakmark Global 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 Oakmark Global will offset losses from the drop in Oakmark Global's long position.| Barings Emerging vs. Clearbridge Energy Mlp | Barings Emerging vs. Dreyfus Natural Resources | Barings Emerging vs. Jennison Natural Resources | Barings Emerging vs. Calvert Global Energy |
| Oakmark Global vs. Oakmark Equity And | Oakmark Global vs. Oakmark International Small | Oakmark Global vs. Oakmark Select Fund | Oakmark Global vs. Oakmark International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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