Correlation Between Barings Global and Barings Global
Can any of the company-specific risk be diversified away by investing in both Barings Global and Barings 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 Global and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Barings Global Credit, you can compare the effects of market volatilities on Barings Global and Barings 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 Global with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Barings Global.
Diversification Opportunities for Barings Global and Barings Global
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Barings is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Barings Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Credit and Barings Global 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 Global Floating are associated (or correlated) with Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Credit has no effect on the direction of Barings Global i.e., Barings Global and Barings Global go up and down completely randomly.
Pair Corralation between Barings Global and Barings Global
Assuming the 90 days horizon Barings Global is expected to generate 1.17 times less return on investment than Barings Global. But when comparing it to its historical volatility, Barings Global Floating is 1.06 times less risky than Barings Global. It trades about 0.2 of its potential returns per unit of risk. Barings Global Credit is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 703.00 in Barings Global Credit on September 2, 2024 and sell it today you would earn a total of 72.00 from holding Barings Global Credit or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Barings Global Credit
Performance |
| Timeline |
| Barings Global Floating |
| Barings Global Credit |
Barings Global and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Barings Global
The main advantage of trading using opposite Barings Global and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Barings 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 Barings Global will offset losses from the drop in Barings Global's long position.| Barings Global vs. Dreyfusstandish Global Fixed | Barings Global vs. Ms Global Fixed | Barings Global vs. Artisan Global Unconstrained | Barings Global vs. Morgan Stanley Global |
| Barings Global vs. Barings Active Short | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Active Short |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |