Correlation Between Newfound Risk and Barings Global
Can any of the company-specific risk be diversified away by investing in both Newfound Risk 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 Newfound Risk and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newfound Risk Managed and Barings Global Floating, you can compare the effects of market volatilities on Newfound Risk 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 Newfound Risk with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newfound Risk and Barings Global.
Diversification Opportunities for Newfound Risk and Barings Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Newfound and Barings is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Newfound Risk Managed and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating and Newfound Risk 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 Newfound Risk Managed 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 Floating has no effect on the direction of Newfound Risk i.e., Newfound Risk and Barings Global go up and down completely randomly.
Pair Corralation between Newfound Risk and Barings Global
If you would invest 859.00 in Barings Global Floating on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Barings Global Floating or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.59% |
| Values | Daily Returns |
Newfound Risk Managed vs. Barings Global Floating
Performance |
| Timeline |
| Newfound Risk Managed |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barings Global Floating |
Newfound Risk and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newfound Risk and Barings Global
The main advantage of trading using opposite Newfound Risk and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newfound Risk 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.| Newfound Risk vs. Ridgeworth Seix Government | Newfound Risk vs. Hsbc Government Money | Newfound Risk vs. Payden Government Fund | Newfound Risk vs. Goldman Sachs Government |
| Barings Global vs. T Rowe Price | Barings Global vs. Small Cap Stock | Barings Global vs. Qs Growth Fund | Barings Global vs. Century Small Cap |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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