Correlation Between Barings Global and Abrdn Global
Can any of the company-specific risk be diversified away by investing in both Barings Global and Abrdn 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 Abrdn 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 Abrdn Global Infrastructure, you can compare the effects of market volatilities on Barings Global and Abrdn 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 Abrdn Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Abrdn Global.
Diversification Opportunities for Barings Global and Abrdn Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and Abrdn is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Abrdn Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Global Infrast 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 Abrdn Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Global Infrast has no effect on the direction of Barings Global i.e., Barings Global and Abrdn Global go up and down completely randomly.
Pair Corralation between Barings Global and Abrdn Global
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.25 times more return on investment than Abrdn Global. However, Barings Global Floating is 3.94 times less risky than Abrdn Global. It trades about 0.18 of its potential returns per unit of risk. Abrdn Global Infrastructure is currently generating about -0.02 per unit of risk. If you would invest 741.00 in Barings Global Floating on November 2, 2024 and sell it today you would earn a total of 133.00 from holding Barings Global Floating or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Barings Global Floating vs. Abrdn Global Infrastructure
Performance |
| Timeline |
| Barings Global Floating |
| Abrdn Global Infrast |
Barings Global and Abrdn Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Abrdn Global
The main advantage of trading using opposite Barings Global and Abrdn Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Abrdn 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 Abrdn Global will offset losses from the drop in Abrdn Global's long position.| Barings Global vs. Gabelli Convertible And | Barings Global vs. Fidelity Sai Convertible | Barings Global vs. Rationalpier 88 Convertible | Barings Global vs. Advent Claymore Convertible |
| Abrdn Global vs. Mesirow Financial Small | Abrdn Global vs. John Hancock Financial | Abrdn Global vs. Icon Financial Fund | Abrdn Global vs. Vanguard Financials Index |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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