Correlation Between Transamerica Intermediate and Barings Global
Can any of the company-specific risk be diversified away by investing in both Transamerica Intermediate 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 Transamerica Intermediate and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Intermediate Muni and Barings Global Credit, you can compare the effects of market volatilities on Transamerica Intermediate 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 Transamerica Intermediate with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Intermediate and Barings Global.
Diversification Opportunities for Transamerica Intermediate and Barings Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Transamerica and Barings is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Intermediate Muni and Barings Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Credit and Transamerica Intermediate 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 Transamerica Intermediate Muni 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 Credit has no effect on the direction of Transamerica Intermediate i.e., Transamerica Intermediate and Barings Global go up and down completely randomly.
Pair Corralation between Transamerica Intermediate and Barings Global
Assuming the 90 days horizon Transamerica Intermediate is expected to generate 1.72 times less return on investment than Barings Global. In addition to that, Transamerica Intermediate is 1.1 times more volatile than Barings Global Credit. It trades about 0.12 of its total potential returns per unit of risk. Barings Global Credit is currently generating about 0.22 per unit of volatility. If you would invest 692.00 in Barings Global Credit on August 24, 2024 and sell it today you would earn a total of 81.00 from holding Barings Global Credit or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Intermediate Muni vs. Barings Global Credit
Performance |
| Timeline |
| Transamerica Intermediate |
| Barings Global Credit |
Transamerica Intermediate and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Intermediate and Barings Global
The main advantage of trading using opposite Transamerica Intermediate and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Intermediate 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.| Transamerica Intermediate vs. Barings Global Floating | Transamerica Intermediate vs. Nuveen Global Real | Transamerica Intermediate vs. Rbb Fund Trust | Transamerica Intermediate vs. Ab Global Risk |
| Barings Global vs. Oklahoma Municipal Fund | Barings Global vs. Transamerica Intermediate Muni | Barings Global vs. Franklin High Yield | Barings Global vs. Nuveen All American Municipal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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