Correlation Between Barings Emerging and Rbc Bluebay
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Rbc Bluebay 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 Rbc Bluebay 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 Rbc Bluebay Emerging, you can compare the effects of market volatilities on Barings Emerging and Rbc Bluebay 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 Rbc Bluebay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Rbc Bluebay.
Diversification Opportunities for Barings Emerging and Rbc Bluebay
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Rbc is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Rbc Bluebay Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Bluebay Emerging 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 Rbc Bluebay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Bluebay Emerging has no effect on the direction of Barings Emerging i.e., Barings Emerging and Rbc Bluebay go up and down completely randomly.
Pair Corralation between Barings Emerging and Rbc Bluebay
Assuming the 90 days horizon Barings Emerging is expected to generate 1.65 times less return on investment than Rbc Bluebay. But when comparing it to its historical volatility, Barings Emerging Markets is 1.13 times less risky than Rbc Bluebay. It trades about 0.06 of its potential returns per unit of risk. Rbc Bluebay Emerging is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Rbc Bluebay Emerging on August 24, 2024 and sell it today you would earn a total of 144.00 from holding Rbc Bluebay Emerging or generate 21.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Rbc Bluebay Emerging
Performance |
| Timeline |
| Barings Emerging Markets |
| Rbc Bluebay Emerging |
Barings Emerging and Rbc Bluebay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Rbc Bluebay
The main advantage of trading using opposite Barings Emerging and Rbc Bluebay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Rbc Bluebay 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 Rbc Bluebay will offset losses from the drop in Rbc Bluebay's long position.| Barings Emerging vs. T Rowe Price | Barings Emerging vs. Artisan High Income | Barings Emerging vs. Versatile Bond Portfolio | Barings Emerging vs. Bbh Intermediate Municipal |
| Rbc Bluebay vs. Sit Emerging Markets | Rbc Bluebay vs. HUMANA INC | Rbc Bluebay vs. Aquagold International | Rbc Bluebay vs. Barloworld Ltd ADR |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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