Correlation Between Great-west Loomis and Barings Us
Can any of the company-specific risk be diversified away by investing in both Great-west Loomis and Barings Us 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 Great-west Loomis and Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Loomis Sayles and Barings High Yield, you can compare the effects of market volatilities on Great-west Loomis and Barings Us 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 Great-west Loomis with a short position of Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Loomis and Barings Us.
Diversification Opportunities for Great-west Loomis and Barings Us
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great-west and Barings is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Great West Loomis Sayles and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield and Great-west Loomis 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 Great West Loomis Sayles are associated (or correlated) with Barings Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Great-west Loomis i.e., Great-west Loomis and Barings Us go up and down completely randomly.
Pair Corralation between Great-west Loomis and Barings Us
Assuming the 90 days horizon Great West Loomis Sayles is expected to under-perform the Barings Us. In addition to that, Great-west Loomis is 7.34 times more volatile than Barings High Yield. It trades about -0.18 of its total potential returns per unit of risk. Barings High Yield is currently generating about -0.38 per unit of volatility. If you would invest 818.00 in Barings High Yield on October 17, 2024 and sell it today you would lose (10.00) from holding Barings High Yield or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Great West Loomis Sayles vs. Barings High Yield
Performance |
| Timeline |
| Great West Loomis |
| Barings High Yield |
Great-west Loomis and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Loomis and Barings Us
The main advantage of trading using opposite Great-west Loomis and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Loomis position performs unexpectedly, Barings Us 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 Us will offset losses from the drop in Barings Us' long position.| Great-west Loomis vs. Qs Large Cap | Great-west Loomis vs. Transamerica Asset Allocation | Great-west Loomis vs. Rational Strategic Allocation | Great-west Loomis vs. Aqr Large Cap |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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