Correlation Between BARINGS EASTERN and CM AM
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By analyzing existing cross correlation between BARINGS EASTERN EUROPE and CM AM Monplus NE, you can compare the effects of market volatilities on BARINGS EASTERN and CM AM 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 EASTERN with a short position of CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARINGS EASTERN and CM AM.
Diversification Opportunities for BARINGS EASTERN and CM AM
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BARINGS and 0P0001F96C is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BARINGS EASTERN EUROPE and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus and BARINGS EASTERN 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 EASTERN EUROPE are associated (or correlated) with CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of BARINGS EASTERN i.e., BARINGS EASTERN and CM AM go up and down completely randomly.
Pair Corralation between BARINGS EASTERN and CM AM
Assuming the 90 days trading horizon BARINGS EASTERN EUROPE is expected to generate 120.95 times more return on investment than CM AM. However, BARINGS EASTERN is 120.95 times more volatile than CM AM Monplus NE. It trades about 0.19 of its potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.3 per unit of risk. If you would invest 3,784 in BARINGS EASTERN EUROPE on September 3, 2024 and sell it today you would earn a total of 147.00 from holding BARINGS EASTERN EUROPE or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BARINGS EASTERN EUROPE vs. CM AM Monplus NE
Performance |
| Timeline |
| BARINGS EASTERN EUROPE |
| CM AM Monplus |
BARINGS EASTERN and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARINGS EASTERN and CM AM
The main advantage of trading using opposite BARINGS EASTERN and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARINGS EASTERN position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM's long position.| BARINGS EASTERN vs. BARINGS LATIN AMERICA | BARINGS EASTERN vs. Esfera Robotics R | BARINGS EASTERN vs. R co Valor F | BARINGS EASTERN vs. CM AM Monplus NE |
| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM vs. Origin Agritech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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