Correlation Between Barings Emerging and Aqr Tm

Can any of the company-specific risk be diversified away by investing in both Barings Emerging and Aqr Tm 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 Aqr Tm 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 Aqr Tm Emerging, you can compare the effects of market volatilities on Barings Emerging and Aqr Tm 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 Aqr Tm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Aqr Tm.

Diversification Opportunities for Barings Emerging and Aqr Tm

0.0

Correlation Coefficient

Barings Emerging  Aqr Tm

Pay attention - limited upside

The 3 months correlation between Barings and Aqr is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Aqr Tm Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Tm Emerging 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 Aqr Tm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Tm Emerging has no effect on the direction of Barings Emerging i.e., Barings Emerging and Aqr Tm go up and down completely randomly.

Pair Corralation between Barings Emerging and Aqr Tm

If you would invest  1,078  in Aqr Tm Emerging on May 7, 2025 and sell it today you would earn a total of  95.00  from holding Aqr Tm Emerging or generate 8.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Barings Emerging Markets  vs.  Aqr Tm Emerging

Barings Emerging Markets

Risk-Adjusted Performance

Very Weak

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

Aqr Tm Emerging

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Tm Emerging are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Tm may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Barings Emerging and Aqr Tm

The main advantage of trading using opposite Barings Emerging and Aqr Tm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging position performs unexpectedly, Aqr Tm 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 Aqr Tm will offset losses from the drop in Aqr Tm's long position.

The idea behind Barings Emerging Markets and Aqr Tm Emerging 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.