Correlation Between Barings Global and Nasdaq-100(r)
Can any of the company-specific risk be diversified away by investing in both Barings Global and Nasdaq-100(r) 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 Nasdaq-100(r) 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Barings Global and Nasdaq-100(r) 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 Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Nasdaq-100(r).
Diversification Opportunities for Barings Global and Nasdaq-100(r)
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Barings and Nasdaq-100(r) is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq-100(r). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Barings Global i.e., Barings Global and Nasdaq-100(r) go up and down completely randomly.
Pair Corralation between Barings Global and Nasdaq-100(r)
Assuming the 90 days horizon Barings Global Floating is not expected to generate positive returns. However, Barings Global Floating is 38.18 times less risky than Nasdaq-100(r). It waists most of its returns potential to compensate for thr risk taken. Nasdaq-100(r) is generating about -0.02 per unit of risk. If you would invest 876.00 in Barings Global Floating on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Barings Global Floating or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Nasdaq 100 2x Strategy
Performance |
| Timeline |
| Barings Global Floating |
| Nasdaq 100 2x |
Barings Global and Nasdaq-100(r) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Nasdaq-100(r)
The main advantage of trading using opposite Barings Global and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Nasdaq-100(r) 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 Nasdaq-100(r) will offset losses from the drop in Nasdaq-100(r)'s long position.| Barings Global vs. Delaware Limited Term Diversified | Barings Global vs. Global Diversified Income | Barings Global vs. Fulcrum Diversified Absolute | Barings Global vs. Aqr Diversified Arbitrage |
| Nasdaq-100(r) vs. John Hancock Money | Nasdaq-100(r) vs. Financials Ultrasector Profund | Nasdaq-100(r) vs. Fidelity Advisor Financial | Nasdaq-100(r) vs. Hewitt Money Market |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |