Correlation Between BARINGS LATIN and BARINGS EASTERN
Can any of the company-specific risk be diversified away by investing in both BARINGS LATIN and BARINGS EASTERN 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 LATIN and BARINGS EASTERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BARINGS LATIN AMERICA and BARINGS EASTERN EUROPE, you can compare the effects of market volatilities on BARINGS LATIN and BARINGS EASTERN 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 BARINGS EASTERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of BARINGS LATIN and BARINGS EASTERN.
Diversification Opportunities for BARINGS LATIN and BARINGS EASTERN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BARINGS and BARINGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BARINGS LATIN AMERICA and BARINGS EASTERN EUROPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARINGS EASTERN EUROPE 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 BARINGS EASTERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARINGS EASTERN EUROPE has no effect on the direction of BARINGS LATIN i.e., BARINGS LATIN and BARINGS EASTERN go up and down completely randomly.
Pair Corralation between BARINGS LATIN and BARINGS EASTERN
If you would invest (100.00) in BARINGS EASTERN EUROPE on September 3, 2024 and sell it today you would earn a total of 100.00 from holding BARINGS EASTERN EUROPE or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BARINGS LATIN AMERICA vs. BARINGS EASTERN EUROPE
Performance |
| Timeline |
| BARINGS LATIN AMERICA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BARINGS EASTERN EUROPE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BARINGS LATIN and BARINGS EASTERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BARINGS LATIN and BARINGS EASTERN
The main advantage of trading using opposite BARINGS LATIN and BARINGS EASTERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BARINGS LATIN position performs unexpectedly, BARINGS EASTERN 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 BARINGS EASTERN will offset losses from the drop in BARINGS EASTERN's long position.| BARINGS LATIN vs. BARINGS EASTERN EUROPE | BARINGS LATIN vs. BARINGS LATIN AMERICA | BARINGS LATIN vs. Esfera Robotics R | BARINGS LATIN vs. R co Valor F |
| BARINGS EASTERN vs. SISF BRIC AC | BARINGS EASTERN vs. Allianz Clean Planet | BARINGS EASTERN vs. BNY Mellon Global | BARINGS EASTERN vs. Lord Abbett Short |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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