Correlation Between Barings Global and 361 Global
Can any of the company-specific risk be diversified away by investing in both Barings Global and 361 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 361 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 361 Global Longshort, you can compare the effects of market volatilities on Barings Global and 361 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 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and 361 Global.
Diversification Opportunities for Barings Global and 361 Global
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and 361 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort 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 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Barings Global i.e., Barings Global and 361 Global go up and down completely randomly.
Pair Corralation between Barings Global and 361 Global
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.39 times more return on investment than 361 Global. However, Barings Global Floating is 2.57 times less risky than 361 Global. It trades about 0.22 of its potential returns per unit of risk. 361 Global Longshort is currently generating about 0.06 per unit of risk. If you would invest 716.00 in Barings Global Floating on August 24, 2024 and sell it today you would earn a total of 161.00 from holding Barings Global Floating or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. 361 Global Longshort
Performance |
| Timeline |
| Barings Global Floating |
| 361 Global Longshort |
Barings Global and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and 361 Global
The main advantage of trading using opposite Barings Global and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, 361 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 361 Global will offset losses from the drop in 361 Global's long position.| Barings Global vs. Floating Rate Fund | Barings Global vs. Lord Abbett Inv | Barings Global vs. HUMANA INC | Barings Global vs. Aquagold International |
| 361 Global vs. Small Midcap Dividend Income | 361 Global vs. Hunter Small Cap | 361 Global vs. Eagle Small Cap | 361 Global vs. Ab Small Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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