Correlation Between Needham Aggressive and Barings Us
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive 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 Needham Aggressive and Barings Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Barings High Yield, you can compare the effects of market volatilities on Needham Aggressive 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 Needham Aggressive with a short position of Barings Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Barings Us.
Diversification Opportunities for Needham Aggressive and Barings Us
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Barings is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth 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 Needham Aggressive 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 Needham Aggressive Growth 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 Needham Aggressive i.e., Needham Aggressive and Barings Us go up and down completely randomly.
Pair Corralation between Needham Aggressive and Barings Us
Assuming the 90 days horizon Needham Aggressive Growth is expected to under-perform the Barings Us. In addition to that, Needham Aggressive is 9.32 times more volatile than Barings High Yield. It trades about -0.08 of its total potential returns per unit of risk. Barings High Yield is currently generating about 0.2 per unit of volatility. If you would invest 812.00 in Barings High Yield on November 29, 2024 and sell it today you would earn a total of 5.00 from holding Barings High Yield or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Barings High Yield
Performance |
| Timeline |
| Needham Aggressive Growth |
| Barings High Yield |
Needham Aggressive and Barings Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Barings Us
The main advantage of trading using opposite Needham Aggressive and Barings Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive 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.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Barings Us vs. Pace International Emerging | Barings Us vs. Mondrian Emerging Markets | Barings Us vs. Pimco Emerging Markets | Barings Us vs. Transamerica Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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