Correlation Between Europac Gold and Barings Active
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Barings Active Short, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Barings Active.
Diversification Opportunities for Europac Gold and Barings Active
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Europac and Barings is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold 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 Europac Gold 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 Europac Gold 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 Europac Gold i.e., Europac Gold and Barings Active go up and down completely randomly.
Pair Corralation between Europac Gold and Barings Active
Assuming the 90 days horizon Europac Gold Fund is expected to generate 10.78 times more return on investment than Barings Active. However, Europac Gold is 10.78 times more volatile than Barings Active Short. It trades about 0.02 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.16 per unit of risk. If you would invest 869.00 in Europac Gold Fund on September 26, 2024 and sell it today you would earn a total of 63.00 from holding Europac Gold Fund or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Barings Active Short
Performance |
| Timeline |
| Europac Gold |
| Barings Active Short |
Europac Gold and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Barings Active
The main advantage of trading using opposite Europac Gold and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.| Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets |
| Barings Active vs. Precious Metals And | Barings Active vs. Goldman Sachs Clean | Barings Active vs. International Investors Gold | Barings Active vs. Europac Gold 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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