Correlation Between Baron Asset and VEEA
Can any of the company-specific risk be diversified away by investing in both Baron Asset and VEEA 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 Baron Asset and VEEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Asset Fund and VEEA, you can compare the effects of market volatilities on Baron Asset and VEEA 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 Baron Asset with a short position of VEEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Asset and VEEA.
Diversification Opportunities for Baron Asset and VEEA
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baron and VEEA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Baron Asset Fund and VEEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEEA and Baron Asset 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 Baron Asset Fund are associated (or correlated) with VEEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEEA has no effect on the direction of Baron Asset i.e., Baron Asset and VEEA go up and down completely randomly.
Pair Corralation between Baron Asset and VEEA
Assuming the 90 days horizon Baron Asset Fund is expected to generate 0.04 times more return on investment than VEEA. However, Baron Asset Fund is 24.75 times less risky than VEEA. It trades about 0.11 of its potential returns per unit of risk. VEEA is currently generating about -0.06 per unit of risk. If you would invest 10,028 in Baron Asset Fund on August 25, 2024 and sell it today you would earn a total of 1,232 from holding Baron Asset Fund or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.73% |
| Values | Daily Returns |
Baron Asset Fund vs. VEEA
Performance |
| Timeline |
| Baron Asset Fund |
| VEEA |
Baron Asset and VEEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Asset and VEEA
The main advantage of trading using opposite Baron Asset and VEEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Asset position performs unexpectedly, VEEA 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 VEEA will offset losses from the drop in VEEA's long position.| Baron Asset vs. Baron Real Estate | Baron Asset vs. Baron Real Estate | Baron Asset vs. Baron Real Estate | Baron Asset vs. Baron Small Cap |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |