Correlation Between Barings Global and Tiaa-cref Inflation-linked
Can any of the company-specific risk be diversified away by investing in both Barings Global and Tiaa-cref Inflation-linked 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 Global and Tiaa-cref Inflation-linked into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Floating and Tiaa Cref Inflation Linked Bond, you can compare the effects of market volatilities on Barings Global and Tiaa-cref Inflation-linked 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 Global with a short position of Tiaa-cref Inflation-linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Tiaa-cref Inflation-linked.
Diversification Opportunities for Barings Global and Tiaa-cref Inflation-linked
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Tiaa-cref is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Floating and Tiaa Cref Inflation Linked Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Inflation-linked and Barings Global 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 Global Floating are associated (or correlated) with Tiaa-cref Inflation-linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Inflation-linked has no effect on the direction of Barings Global i.e., Barings Global and Tiaa-cref Inflation-linked go up and down completely randomly.
Pair Corralation between Barings Global and Tiaa-cref Inflation-linked
Assuming the 90 days horizon Barings Global is expected to generate 4.35 times less return on investment than Tiaa-cref Inflation-linked. But when comparing it to its historical volatility, Barings Global Floating is 1.4 times less risky than Tiaa-cref Inflation-linked. It trades about 0.09 of its potential returns per unit of risk. Tiaa Cref Inflation Linked Bond is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Tiaa Cref Inflation Linked Bond on June 3, 2025 and sell it today you would earn a total of 32.00 from holding Tiaa Cref Inflation Linked Bond or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Global Floating vs. Tiaa Cref Inflation Linked Bon
Performance |
| Timeline |
| Barings Global Floating |
| Tiaa-cref Inflation-linked |
Barings Global and Tiaa-cref Inflation-linked Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Global and Tiaa-cref Inflation-linked
The main advantage of trading using opposite Barings Global and Tiaa-cref Inflation-linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global position performs unexpectedly, Tiaa-cref Inflation-linked 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 Tiaa-cref Inflation-linked will offset losses from the drop in Tiaa-cref Inflation-linked's long position.| Barings Global vs. Siit Emerging Markets | Barings Global vs. Ashmore Emerging Markets | Barings Global vs. Doubleline Emerging Markets | Barings Global vs. Angel Oak Multi Strategy |
| Tiaa-cref Inflation-linked vs. Artisan High Income | Tiaa-cref Inflation-linked vs. Prudential High Yield | Tiaa-cref Inflation-linked vs. Gmo High Yield | Tiaa-cref Inflation-linked vs. Barings High Yield |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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