Correlation Between Barings Global and Mainstay Floating
Can any of the company-specific risk be diversified away by investing in both Barings Global and Mainstay Floating 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 Mainstay Floating 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 Mainstay Floating Rate, you can compare the effects of market volatilities on Barings Global and Mainstay Floating 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 Mainstay Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Mainstay Floating.
Diversification Opportunities for Barings Global and Mainstay Floating
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barings and Mainstay is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Mainstay Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Floating Rate 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 Mainstay Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Floating Rate has no effect on the direction of Barings Global i.e., Barings Global and Mainstay Floating go up and down completely randomly.
Pair Corralation between Barings Global and Mainstay Floating
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.88 times more return on investment than Mainstay Floating. However, Barings Global Floating is 1.14 times less risky than Mainstay Floating. It trades about 0.29 of its potential returns per unit of risk. Mainstay Floating Rate is currently generating about 0.25 per unit of risk. If you would invest 871.00 in Barings Global Floating on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Barings Global Floating or generate 0.69% 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. Mainstay Floating Rate
Performance |
| Timeline |
| Barings Global Floating |
| Mainstay Floating Rate |
Barings Global and Mainstay Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Mainstay Floating
The main advantage of trading using opposite Barings Global and Mainstay Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Mainstay Floating 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 Mainstay Floating will offset losses from the drop in Mainstay Floating's long position.| Barings Global vs. Barings Active Short | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Active Short |
| Mainstay Floating vs. Scharf Global Opportunity | Mainstay Floating vs. Mirova Global Green | Mainstay Floating vs. T Rowe Price | Mainstay Floating vs. Barings Global Floating |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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