Correlation Between Mfs Emerging and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Mfs Emerging and Barings 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 Mfs Emerging and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Emerging Markets and Barings Emerging Markets, you can compare the effects of market volatilities on Mfs Emerging and Barings 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 Mfs Emerging with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Emerging and Barings Emerging.
Diversification Opportunities for Mfs Emerging and Barings Emerging
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mfs and Barings is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Emerging Markets and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets and Mfs Emerging 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 Mfs Emerging Markets are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Mfs Emerging i.e., Mfs Emerging and Barings Emerging go up and down completely randomly.
Pair Corralation between Mfs Emerging and Barings Emerging
Assuming the 90 days horizon Mfs Emerging Markets is expected to generate 0.96 times more return on investment than Barings Emerging. However, Mfs Emerging Markets is 1.04 times less risky than Barings Emerging. It trades about 0.08 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.08 per unit of risk. If you would invest 1,044 in Mfs Emerging Markets on August 27, 2024 and sell it today you would earn a total of 166.00 from holding Mfs Emerging Markets or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mfs Emerging Markets vs. Barings Emerging Markets
Performance |
| Timeline |
| Mfs Emerging Markets |
| Barings Emerging Markets |
Mfs Emerging and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Emerging and Barings Emerging
The main advantage of trading using opposite Mfs Emerging and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Emerging position performs unexpectedly, Barings 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
| Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Boston Trust Small | Barings Emerging vs. Barings Emerging Markets | Barings Emerging vs. Blkrc Sgy Mnp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |