Correlation Between Barings Global and College Retirement
Can any of the company-specific risk be diversified away by investing in both Barings Global and College Retirement 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 College Retirement 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 College Retirement Equities, you can compare the effects of market volatilities on Barings Global and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and College Retirement.
Diversification Opportunities for Barings Global and College Retirement
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and College is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of Barings Global i.e., Barings Global and College Retirement go up and down completely randomly.
Pair Corralation between Barings Global and College Retirement
Assuming the 90 days horizon Barings Global Floating is expected to generate 0.09 times more return on investment than College Retirement. However, Barings Global Floating is 10.54 times less risky than College Retirement. It trades about -0.2 of its potential returns per unit of risk. College Retirement Equities is currently generating about -0.1 per unit of risk. If you would invest 879.00 in Barings Global Floating on October 11, 2024 and sell it today you would lose (3.00) from holding Barings Global Floating or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. College Retirement Equities
Performance |
| Timeline |
| Barings Global Floating |
| College Retirement |
Barings Global and College Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and College Retirement
The main advantage of trading using opposite Barings Global and College Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, College Retirement 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 College Retirement will offset losses from the drop in College Retirement's long position.| Barings Global vs. Calamos Growth Fund | Barings Global vs. Small Pany Growth | Barings Global vs. Mairs Power Growth | Barings Global vs. The Hartford Growth |
| College Retirement vs. Barings Global Floating | College Retirement vs. Gmo Global Equity | College Retirement vs. Commonwealth Global Fund | College Retirement 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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