Correlation Between Washington Mutual and Barings Global
Can any of the company-specific risk be diversified away by investing in both Washington Mutual 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 Washington Mutual and Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Mutual Investors and Barings Global Emerging, you can compare the effects of market volatilities on Washington Mutual 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 Washington Mutual with a short position of Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Mutual and Barings Global.
Diversification Opportunities for Washington Mutual and Barings Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Washington and Barings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Washington Mutual Investors and Barings Global Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Emerging and Washington Mutual 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 Washington Mutual 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 Emerging has no effect on the direction of Washington Mutual i.e., Washington Mutual and Barings Global go up and down completely randomly.
Pair Corralation between Washington Mutual and Barings Global
If you would invest 986.00 in Barings Global Emerging on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Barings Global Emerging or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 70.31% |
Values | Daily Returns |
Washington Mutual Investors vs. Barings Global Emerging
Performance |
Timeline |
Washington Mutual |
Barings Global Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Washington Mutual and Barings Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Washington Mutual and Barings Global
The main advantage of trading using opposite Washington Mutual and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Mutual 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.Washington Mutual vs. Income Fund Of | ||
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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