Correlation Between BARINGS LATIN and IE00B0H4TS55
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By analyzing existing cross correlation between BARINGS LATIN AMERICA and IE00B0H4TS55, you can compare the effects of market volatilities on BARINGS LATIN and IE00B0H4TS55 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 LATIN with a short position of IE00B0H4TS55. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARINGS LATIN and IE00B0H4TS55.
Diversification Opportunities for BARINGS LATIN and IE00B0H4TS55
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BARINGS and IE00B0H4TS55 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BARINGS LATIN AMERICA and IE00B0H4TS55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IE00B0H4TS55 and BARINGS LATIN 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 LATIN AMERICA are associated (or correlated) with IE00B0H4TS55. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IE00B0H4TS55 has no effect on the direction of BARINGS LATIN i.e., BARINGS LATIN and IE00B0H4TS55 go up and down completely randomly.
Pair Corralation between BARINGS LATIN and IE00B0H4TS55
Assuming the 90 days trading horizon BARINGS LATIN AMERICA is expected to generate 5.94 times more return on investment than IE00B0H4TS55. However, BARINGS LATIN is 5.94 times more volatile than IE00B0H4TS55. It trades about 0.05 of its potential returns per unit of risk. IE00B0H4TS55 is currently generating about 0.07 per unit of risk. If you would invest 2,651 in BARINGS LATIN AMERICA on October 23, 2024 and sell it today you would earn a total of 27.00 from holding BARINGS LATIN AMERICA or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BARINGS LATIN AMERICA vs. IE00B0H4TS55
Performance |
| Timeline |
| BARINGS LATIN AMERICA |
| IE00B0H4TS55 |
BARINGS LATIN and IE00B0H4TS55 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARINGS LATIN and IE00B0H4TS55
The main advantage of trading using opposite BARINGS LATIN and IE00B0H4TS55 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARINGS LATIN position performs unexpectedly, IE00B0H4TS55 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 IE00B0H4TS55 will offset losses from the drop in IE00B0H4TS55's long position.| BARINGS LATIN vs. BARINGS EASTERN EUROPE | BARINGS LATIN vs. Esfera Robotics R | BARINGS LATIN vs. R co Valor F | BARINGS LATIN vs. CM AM Monplus NE |
| IE00B0H4TS55 vs. Esfera Robotics R | IE00B0H4TS55 vs. R co Valor F | IE00B0H4TS55 vs. CM AM Monplus NE | IE00B0H4TS55 vs. DWS Aktien Strategie |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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