Correlation Between Barings Emerging and Saat Market
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Saat Market 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 Saat Market 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 Saat Market Growth, you can compare the effects of market volatilities on Barings Emerging and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Saat Market.
Diversification Opportunities for Barings Emerging and Saat Market
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and SAAT is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Barings Emerging i.e., Barings Emerging and Saat Market go up and down completely randomly.
Pair Corralation between Barings Emerging and Saat Market
Assuming the 90 days horizon Barings Emerging Markets is expected to under-perform the Saat Market. But the mutual fund apears to be less risky and, when comparing its historical volatility, Barings Emerging Markets is 1.4 times less risky than Saat Market. The mutual fund trades about -0.25 of its potential returns per unit of risk. The Saat Market Growth is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,297 in Saat Market Growth on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Saat Market Growth or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Barings Emerging Markets vs. Saat Market Growth
Performance |
| Timeline |
| Barings Emerging Markets |
| Saat Market Growth |
Barings Emerging and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Saat Market
The main advantage of trading using opposite Barings Emerging and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. HUMANA INC | Barings Emerging vs. Aquagold International | Barings Emerging vs. Barloworld Ltd ADR |
| Saat Market vs. Rbc Emerging Markets | Saat Market vs. Shelton Emerging Markets | Saat Market vs. Federated Emerging Market | Saat Market vs. Barings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |