Correlation Between Quantitative and Barings Global
Can any of the company-specific risk be diversified away by investing in both Quantitative 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 Quantitative and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantitative U S and Barings Global Credit, you can compare the effects of market volatilities on Quantitative 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 Quantitative with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantitative and Barings Global.
Diversification Opportunities for Quantitative and Barings Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quantitative and Barings is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Quantitative U S 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 Quantitative 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 Quantitative U S 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 Quantitative i.e., Quantitative and Barings Global go up and down completely randomly.
Pair Corralation between Quantitative and Barings Global
Assuming the 90 days horizon Quantitative U S is expected to generate 5.9 times more return on investment than Barings Global. However, Quantitative is 5.9 times more volatile than Barings Global Credit. It trades about 0.27 of its potential returns per unit of risk. Barings Global Credit is currently generating about 0.32 per unit of risk. If you would invest 1,425 in Quantitative U S on August 31, 2024 and sell it today you would earn a total of 75.00 from holding Quantitative U S or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantitative U S vs. Barings Global Credit
Performance |
| Timeline |
| Quantitative U S |
| Barings Global Credit |
Quantitative and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantitative and Barings Global
The main advantage of trading using opposite Quantitative and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantitative 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.| Quantitative vs. Siit High Yield | Quantitative vs. Multi Manager High Yield | Quantitative vs. Prudential Short Duration | Quantitative vs. Dunham High Yield |
| Barings Global vs. Oppenheimer International Diversified | Barings Global vs. Fidelity Advisor Diversified | Barings Global vs. Evaluator Conservative Rms | Barings Global vs. Western Asset Diversified |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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