Correlation Between Barings Us and Clearbridge Small
Can any of the company-specific risk be diversified away by investing in both Barings Us and Clearbridge Small 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 Us and Clearbridge Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings High Yield and Clearbridge Small Cap, you can compare the effects of market volatilities on Barings Us and Clearbridge Small 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 Us with a short position of Clearbridge Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Us and Clearbridge Small.
Diversification Opportunities for Barings Us and Clearbridge Small
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Clearbridge is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Barings High Yield and Clearbridge Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Small Cap and Barings Us 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 High Yield are associated (or correlated) with Clearbridge Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Small Cap has no effect on the direction of Barings Us i.e., Barings Us and Clearbridge Small go up and down completely randomly.
Pair Corralation between Barings Us and Clearbridge Small
If you would invest 806.00 in Barings High Yield on October 24, 2024 and sell it today you would earn a total of 8.00 from holding Barings High Yield or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Barings High Yield vs. Clearbridge Small Cap
Performance |
| Timeline |
| Barings High Yield |
| Clearbridge Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Us and Clearbridge Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Us and Clearbridge Small
The main advantage of trading using opposite Barings Us and Clearbridge Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Us position performs unexpectedly, Clearbridge Small 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 Clearbridge Small will offset losses from the drop in Clearbridge Small's long position.| Barings Us vs. Federated Hermes Conservative | Barings Us vs. Guggenheim Diversified Income | Barings Us vs. Putnam Diversified Income | Barings Us vs. Wealthbuilder Conservative Allocation |
| Clearbridge Small vs. Gmo High Yield | Clearbridge Small vs. Multi Manager High Yield | Clearbridge Small vs. Msift High Yield | Clearbridge Small vs. Barings High Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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