Correlation Between Barings Emerging and Catalyst Intelligent
Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Catalyst Intelligent 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 Barings Emerging and Catalyst Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Catalyst Intelligent Alternative, you can compare the effects of market volatilities on Barings Emerging and Catalyst Intelligent 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 Barings Emerging with a short position of Catalyst Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Catalyst Intelligent.
Diversification Opportunities for Barings Emerging and Catalyst Intelligent
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Catalyst is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Catalyst Intelligent Alternati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Intelligent and Barings Emerging 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 Barings Emerging Markets are associated (or correlated) with Catalyst Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Intelligent has no effect on the direction of Barings Emerging i.e., Barings Emerging and Catalyst Intelligent go up and down completely randomly.
Pair Corralation between Barings Emerging and Catalyst Intelligent
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 0.21 times more return on investment than Catalyst Intelligent. However, Barings Emerging Markets is 4.86 times less risky than Catalyst Intelligent. It trades about 0.27 of its potential returns per unit of risk. Catalyst Intelligent Alternative is currently generating about -0.14 per unit of risk. If you would invest 728.00 in Barings Emerging Markets on December 29, 2024 and sell it today you would earn a total of 31.00 from holding Barings Emerging Markets or generate 4.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Barings Emerging Markets vs. Catalyst Intelligent Alternati
Performance |
Timeline |
Barings Emerging Markets |
Catalyst Intelligent |
Barings Emerging and Catalyst Intelligent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Emerging and Catalyst Intelligent
The main advantage of trading using opposite Barings Emerging and Catalyst Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Catalyst Intelligent 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 Catalyst Intelligent will offset losses from the drop in Catalyst Intelligent's long position.Barings Emerging vs. Pace International Equity | Barings Emerging vs. Touchstone International Equity | Barings Emerging vs. Scharf Fund Retail | Barings Emerging vs. Morningstar International Equity |
Catalyst Intelligent vs. Legg Mason Partners | Catalyst Intelligent vs. Glg Intl Small | Catalyst Intelligent vs. Small Midcap Dividend Income | Catalyst Intelligent vs. Artisan Small Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Fundamental Analysis View fundamental data based on most recent published financial statements |