Correlation Between Oppenhmr Discovery and Barings Global

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

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

Diversification Opportunities for Oppenhmr Discovery and Barings Global

-0.18

Correlation Coefficient

Oppenhmr Discovery  Barings Global

Good diversification

The 3 months correlation between Oppenhmr and Barings is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oppenhmr Discovery Mid 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 Oppenhmr Discovery 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 Oppenhmr Discovery Mid 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 Oppenhmr Discovery i.e., Oppenhmr Discovery and Barings Global go up and down completely randomly.

Pair Corralation between Oppenhmr Discovery and Barings Global

Assuming the 90 days horizon Oppenhmr Discovery Mid is expected to generate 5.82 times more return on investment than Barings Global. However, Oppenhmr Discovery is 5.82 times more volatile than Barings Global Floating. It trades about 0.07 of its potential returns per unit of risk. Barings Global Floating is currently generating about 0.19 per unit of risk. If you would invest  2,579  in Oppenhmr Discovery Mid on October 26, 2024 and sell it today you would earn a total of  1,014  from holding Oppenhmr Discovery Mid or generate 39.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Oppenhmr Discovery Mid  vs.  Barings Global Floating

Oppenhmr Discovery Mid

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenhmr Discovery Mid are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Oppenhmr Discovery may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Barings Global Floating

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Barings Global Floating are ranked lower than 16 (%) 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 Oppenhmr Discovery and Barings Global

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

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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.