Correlation Between Intuitive Investments and Baring Emerging
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and Baring Emerging 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 Intuitive Investments and Baring Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and Baring Emerging Europe, you can compare the effects of market volatilities on Intuitive Investments and Baring Emerging 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 Intuitive Investments with a short position of Baring Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and Baring Emerging.
Diversification Opportunities for Intuitive Investments and Baring Emerging
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intuitive and Baring is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and Baring Emerging Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baring Emerging Europe and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with Baring Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baring Emerging Europe has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and Baring Emerging go up and down completely randomly.
Pair Corralation between Intuitive Investments and Baring Emerging
Assuming the 90 days trading horizon Intuitive Investments is expected to generate 78.45 times less return on investment than Baring Emerging. In addition to that, Intuitive Investments is 2.08 times more volatile than Baring Emerging Europe. It trades about 0.0 of its total potential returns per unit of risk. Baring Emerging Europe is currently generating about 0.09 per unit of volatility. If you would invest 55,903 in Baring Emerging Europe on August 24, 2024 and sell it today you would earn a total of 6,097 from holding Baring Emerging Europe or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intuitive Investments Group vs. Baring Emerging Europe
Performance |
| Timeline |
| Intuitive Investments |
| Baring Emerging Europe |
Intuitive Investments and Baring Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and Baring Emerging
The main advantage of trading using opposite Intuitive Investments and Baring Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, Baring Emerging 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 Baring Emerging will offset losses from the drop in Baring Emerging's long position.| Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Toyota Motor Corp | Intuitive Investments vs. Reliance Industries Ltd |
| Baring Emerging vs. Schweiter Technologies AG | Baring Emerging vs. MyHealthChecked Plc | Baring Emerging vs. CVS Health Corp | Baring Emerging vs. BioNTech SE |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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