Correlation Between Listed Funds and Barings Global
Can any of the company-specific risk be diversified away by investing in both Listed Funds 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 Listed Funds and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Barings Global Short, you can compare the effects of market volatilities on Listed Funds 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 Listed Funds with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Barings Global.
Diversification Opportunities for Listed Funds and Barings Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Listed and Barings is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds Trust and Barings Global Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Short and Listed Funds 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 Listed Funds Trust 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 Short has no effect on the direction of Listed Funds i.e., Listed Funds and Barings Global go up and down completely randomly.
Pair Corralation between Listed Funds and Barings Global
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 0.93 times more return on investment than Barings Global. However, Listed Funds Trust is 1.08 times less risky than Barings Global. It trades about 0.55 of its potential returns per unit of risk. Barings Global Short is currently generating about 0.14 per unit of risk. If you would invest 2,936 in Listed Funds Trust on August 27, 2024 and sell it today you would earn a total of 413.00 from holding Listed Funds Trust or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Listed Funds Trust vs. Barings Global Short
Performance |
| Timeline |
| Listed Funds Trust |
| Barings Global Short |
Listed Funds and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Barings Global
The main advantage of trading using opposite Listed Funds and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds 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.| Listed Funds vs. EA Series Trust | Listed Funds vs. EA Series Trust | Listed Funds vs. Rumble Inc | Listed Funds vs. EA Series Trust |
| Barings Global vs. Western Asset Global | Barings Global vs. Western Asset High | Barings Global vs. Voya Global Advantage | Barings Global vs. Voya Global Equity |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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