Correlation Between Eic Value and Barings Global
Can any of the company-specific risk be diversified away by investing in both Eic Value and Barings Global 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 Global 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 Global Credit, you can compare the effects of market volatilities on Eic Value and Barings Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Barings Global.
Diversification Opportunities for Eic Value and Barings Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eic and Barings is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Barings Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Credit 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Credit has no effect on the direction of Eic Value i.e., Eic Value and Barings Global go up and down completely randomly.
Pair Corralation between Eic Value and Barings Global
Assuming the 90 days horizon Eic Value Fund is expected to generate 4.91 times more return on investment than Barings Global. However, Eic Value is 4.91 times more volatile than Barings Global Credit. It trades about 0.2 of its potential returns per unit of risk. Barings Global Credit is currently generating about 0.23 per unit of risk. If you would invest 1,870 in Eic Value Fund on August 28, 2024 and sell it today you would earn a total of 51.00 from holding Eic Value Fund or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Barings Global Credit
Performance |
| Timeline |
| Eic Value Fund |
| Barings Global Credit |
Eic Value and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Barings Global
The main advantage of trading using opposite Eic Value and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Barings Global 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 Global will offset losses from the drop in Barings Global's long position.| Eic Value vs. Archer Balanced Fund | Eic Value vs. Balanced Fund Investor | Eic Value vs. Ab Value Fund | Eic Value vs. Volumetric Fund Volumetric |
| Barings Global vs. Angel Oak Multi Strategy | Barings Global vs. Investec Emerging Markets | Barings Global vs. Nasdaq 100 2x Strategy | Barings Global vs. Western Assets Emerging |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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