Correlation Between Barings Global and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Barings Global and Simt Multi 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 Simt Multi 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 Simt Multi Asset Capital, you can compare the effects of market volatilities on Barings Global and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Simt Multi.
Diversification Opportunities for Barings Global and Simt Multi
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Simt is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Simt Multi Asset Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Barings Global i.e., Barings Global and Simt Multi go up and down completely randomly.
Pair Corralation between Barings Global and Simt Multi
Assuming the 90 days horizon Barings Global Floating is expected to generate 1.05 times more return on investment than Simt Multi. However, Barings Global is 1.05 times more volatile than Simt Multi Asset Capital. It trades about 0.21 of its potential returns per unit of risk. Simt Multi Asset Capital is currently generating about 0.15 per unit of risk. If you would invest 771.00 in Barings Global Floating on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Barings Global Floating or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Barings Global Floating vs. Simt Multi Asset Capital
Performance |
| Timeline |
| Barings Global Floating |
| Simt Multi Asset |
Barings Global and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Simt Multi
The main advantage of trading using opposite Barings Global and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi's long position.| Barings Global vs. Janus High Yield Fund | Barings Global vs. Buffalo High Yield | Barings Global vs. Pace High Yield | Barings Global vs. Msift High Yield |
| Simt Multi vs. Transamerica Intermediate Muni | Simt Multi vs. Baird Strategic Municipal | Simt Multi vs. Morningstar Municipal Bond | Simt Multi vs. Gamco Global Telecommunications |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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