Correlation Between Cajxx and Barings Global

Can any of the company-specific risk be diversified away by investing in both Cajxx 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 Cajxx and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cajxx and Barings Global Floating, you can compare the effects of market volatilities on Cajxx 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 Cajxx with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cajxx and Barings Global.

Diversification Opportunities for Cajxx and Barings Global

0.0

Correlation Coefficient

Cajxx  Barings Global

Pay attention - limited upside

The 3 months correlation between Cajxx and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cajxx 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 Cajxx 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 Cajxx 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 Cajxx i.e., Cajxx and Barings Global go up and down completely randomly.

Pair Corralation between Cajxx and Barings Global

If you would invest  727.00  in Barings Global Floating on October 21, 2024 and sell it today you would earn a total of  150.00  from holding Barings Global Floating or generate 20.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.2%
Values	Daily Returns

Cajxx  vs.  Barings Global Floating

Cajxx

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Cajxx has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cajxx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Barings Global Floating

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Barings Global Floating are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Barings Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cajxx and Barings Global

The main advantage of trading using opposite Cajxx and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cajxx 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.

The idea behind Cajxx and Barings Global Floating pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.