Correlation Between VR and Barings Global
Can any of the company-specific risk be diversified away by investing in both VR 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 VR and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VR and Barings Global Short, you can compare the effects of market volatilities on VR 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 VR with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of VR and Barings Global.
Diversification Opportunities for VR and Barings Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VR and Barings is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding VR 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 VR 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 VR 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 VR i.e., VR and Barings Global go up and down completely randomly.
Pair Corralation between VR and Barings Global
If you would invest 1,512 in Barings Global Short on August 31, 2024 and sell it today you would earn a total of 67.00 from holding Barings Global Short or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
VR vs. Barings Global Short
Performance |
| Timeline |
| VR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barings Global Short |
VR and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VR and Barings Global
The main advantage of trading using opposite VR and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VR 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.| VR vs. AXIS Capital Holdings | VR vs. Renaissancere Holdings | VR vs. Aspira Womens Health | VR vs. Prenetics Global |
| Barings Global vs. Eaton Vance National | Barings Global vs. Invesco High Income | Barings Global vs. Blackrock Muniholdings Ny | Barings Global vs. Nuveen California Select |
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 CEOs Directory module to screen CEOs from public companies around the world.
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