Correlation Between Saat Market and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Saat Market 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 Saat Market and Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Barings Emerging Markets, you can compare the effects of market volatilities on Saat Market 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 Saat Market with a short position of Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Barings Emerging.
Diversification Opportunities for Saat Market and Barings Emerging
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saat and Barings is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth 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 Saat Market 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 Saat Market Growth 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 Saat Market i.e., Saat Market and Barings Emerging go up and down completely randomly.
Pair Corralation between Saat Market and Barings Emerging
Assuming the 90 days horizon Saat Market Growth is expected to generate 1.13 times more return on investment than Barings Emerging. However, Saat Market is 1.13 times more volatile than Barings Emerging Markets. It trades about 0.36 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest 1,267 in Saat Market Growth on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Saat Market Growth or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Saat Market Growth vs. Barings Emerging Markets
Performance |
| Timeline |
| Saat Market Growth |
| Barings Emerging Markets |
Saat Market and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Barings Emerging
The main advantage of trading using opposite Saat Market and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market 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.| Saat Market vs. Simt Multi Asset Accumulation | Saat Market vs. Simt Real Return | Saat Market vs. Simt Small Cap | Saat Market vs. Siit Screened World |
| Barings Emerging vs. Artisan High Income | Barings Emerging vs. Federated Ohio Municipal | Barings Emerging vs. Versatile Bond Portfolio | Barings Emerging vs. Ambrus Core Bond |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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