Correlation Between Barings Global and Bats Series
Can any of the company-specific risk be diversified away by investing in both Barings Global and Bats Series 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 Bats Series 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 Bats Series S, you can compare the effects of market volatilities on Barings Global and Bats Series 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 Bats Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Bats Series.
Diversification Opportunities for Barings Global and Bats Series
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Bats is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Bats Series S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bats Series S 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 Bats Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bats Series S has no effect on the direction of Barings Global i.e., Barings Global and Bats Series go up and down completely randomly.
Pair Corralation between Barings Global and Bats Series
Assuming the 90 days horizon Barings Global Floating is expected to generate 1.19 times more return on investment than Bats Series. However, Barings Global is 1.19 times more volatile than Bats Series S. It trades about 0.22 of its potential returns per unit of risk. Bats Series S is currently generating about 0.11 per unit of risk. If you would invest 841.00 in Barings Global Floating on November 3, 2024 and sell it today you would earn a total of 34.00 from holding Barings Global Floating or generate 4.04% 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. Bats Series S
Performance |
| Timeline |
| Barings Global Floating |
| Bats Series S |
Barings Global and Bats Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Bats Series
The main advantage of trading using opposite Barings Global and Bats Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Bats Series 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 Bats Series will offset losses from the drop in Bats Series' long position.| Barings Global vs. Vanguard Growth And | Barings Global vs. Growth Portfolio Class | Barings Global vs. Artisan Small Cap | Barings Global vs. Mid Cap Growth |
| Bats Series vs. Bats Series M | Bats Series vs. Bats Series C | Bats Series vs. Bats Series E | Bats Series vs. Bats Series P |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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