Correlation Between Barings Global and Brandes E
Can any of the company-specific risk be diversified away by investing in both Barings Global and Brandes E 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 Brandes E 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 Brandes E Plus, you can compare the effects of market volatilities on Barings Global and Brandes E 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 Brandes E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Brandes E.
Diversification Opportunities for Barings Global and Brandes E
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Barings and Brandes is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Brandes E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes E Plus 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 Brandes E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes E Plus has no effect on the direction of Barings Global i.e., Barings Global and Brandes E go up and down completely randomly.
Pair Corralation between Barings Global and Brandes E
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.53 times more return on investment than Brandes E. However, Barings Global Floating is 1.89 times less risky than Brandes E. It trades about 0.21 of its potential returns per unit of risk. Brandes E Plus is currently generating about 0.06 per unit of risk. If you would invest 771.00 in Barings Global Floating on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Barings Global Floating or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Brandes E Plus
Performance |
| Timeline |
| Barings Global Floating |
| Brandes E Plus |
Barings Global and Brandes E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Brandes E
The main advantage of trading using opposite Barings Global and Brandes E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Brandes E 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 Brandes E will offset losses from the drop in Brandes E's long position.| Barings Global vs. Janus High Yield Fund | Barings Global vs. Buffalo High Yield | Barings Global vs. Pace High Yield | Barings Global vs. Msift High Yield |
| Brandes E vs. Barings Global Floating | Brandes E vs. Ab Global Risk | Brandes E vs. Investec Global Franchise | Brandes E vs. Ab Global Bond |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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