Correlation Between Eic Value and Barings Active
Can any of the company-specific risk be diversified away by investing in both Eic Value and Barings Active 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 Eic Value and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Barings Active Short, you can compare the effects of market volatilities on Eic Value and Barings Active 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 Eic Value with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Barings Active.
Diversification Opportunities for Eic Value and Barings Active
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eic and Barings is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short and Eic Value 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 Eic Value Fund are associated (or correlated) with Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Eic Value i.e., Eic Value and Barings Active go up and down completely randomly.
Pair Corralation between Eic Value and Barings Active
Assuming the 90 days horizon Eic Value Fund is expected to generate 5.07 times more return on investment than Barings Active. However, Eic Value is 5.07 times more volatile than Barings Active Short. It trades about 0.08 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.26 per unit of risk. If you would invest 1,770 in Eic Value Fund on November 27, 2024 and sell it today you would earn a total of 15.00 from holding Eic Value Fund or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Barings Active Short
Performance |
| Timeline |
| Eic Value Fund |
| Barings Active Short |
Eic Value and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Barings Active
The main advantage of trading using opposite Eic Value and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Barings Active 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 Active will offset losses from the drop in Barings Active's long position.| Eic Value vs. Prudential California Muni | Eic Value vs. Us Government Securities | Eic Value vs. John Hancock Government | Eic Value vs. Vanguard Intermediate Term Government |
| Barings Active vs. Sprott Gold Equity | Barings Active vs. Gamco Global Gold | Barings Active vs. Precious Metals And | Barings Active vs. Ocm Mutual Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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