Correlation Between Us Global and Barings Global
Can any of the company-specific risk be diversified away by investing in both Us Global 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 Us Global and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Global Investors and Barings Global Floating, you can compare the effects of market volatilities on Us Global 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 Us Global with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Global and Barings Global.
Diversification Opportunities for Us Global and Barings Global
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USLUX and Barings is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Us Global Investors 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 Us Global 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 Us Global Investors 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 Us Global i.e., Us Global and Barings Global go up and down completely randomly.
Pair Corralation between Us Global and Barings Global
Assuming the 90 days horizon Us Global Investors is expected to generate 5.57 times more return on investment than Barings Global. However, Us Global is 5.57 times more volatile than Barings Global Floating. It trades about 0.05 of its potential returns per unit of risk. Barings Global Floating is currently generating about 0.22 per unit of risk. If you would invest 1,689 in Us Global Investors on August 28, 2024 and sell it today you would earn a total of 476.00 from holding Us Global Investors or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Global Investors vs. Barings Global Floating
Performance |
| Timeline |
| Us Global Investors |
| Barings Global Floating |
Us Global and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Global and Barings Global
The main advantage of trading using opposite Us Global and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Global 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.| Us Global vs. International Paper | Us Global vs. O I Glass | Us Global vs. Smurfit WestRock plc | Us Global vs. Driven Brands Holdings |
| Barings Global vs. World Energy Fund | Barings Global vs. Energy Basic Materials | Barings Global vs. Jennison Natural Resources | Barings Global vs. Oil Gas Ultrasector |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |