Correlation Between Barings Global and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both Barings Global and Osterweis Strategic 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 Osterweis Strategic 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 Osterweis Strategic Investment, you can compare the effects of market volatilities on Barings Global and Osterweis Strategic 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Osterweis Strategic.
Diversification Opportunities for Barings Global and Osterweis Strategic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Osterweis is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Osterweis Strategic Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of Barings Global i.e., Barings Global and Osterweis Strategic go up and down completely randomly.
Pair Corralation between Barings Global and Osterweis Strategic
Assuming the 90 days horizon Barings Global is expected to generate 1.54 times less return on investment than Osterweis Strategic. But when comparing it to its historical volatility, Barings Global Floating is 2.76 times less risky than Osterweis Strategic. It trades about 0.2 of its potential returns per unit of risk. Osterweis Strategic Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,579 in Osterweis Strategic Investment on September 14, 2024 and sell it today you would earn a total of 221.00 from holding Osterweis Strategic Investment or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Osterweis Strategic Investment
Performance |
| Timeline |
| Barings Global Floating |
| Osterweis Strategic |
Barings Global and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Osterweis Strategic
The main advantage of trading using opposite Barings Global and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Osterweis Strategic 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic's long position.| Barings Global vs. Boston Partners Longshort | Barings Global vs. Barings Active Short | Barings Global vs. Quantitative Longshort Equity | Barings Global vs. Siit Ultra Short |
| Osterweis Strategic vs. Osterweis Fund Investor | Osterweis Strategic vs. Osterweis Emerging Opportunity | Osterweis Strategic vs. Osterweis Strategic Income | Osterweis Strategic vs. Aggressive Investors 1 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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