Correlation Between Bbh Intermediate and Baron Health
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Baron Health 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 Bbh Intermediate and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Baron Health Care, you can compare the effects of market volatilities on Bbh Intermediate and Baron Health 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 Bbh Intermediate with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Baron Health.
Diversification Opportunities for Bbh Intermediate and Baron Health
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BBH and Baron is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Baron Health go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Baron Health
Assuming the 90 days horizon Bbh Intermediate is expected to generate 1.2 times less return on investment than Baron Health. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 4.16 times less risky than Baron Health. It trades about 0.15 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,043 in Baron Health Care on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Baron Health Care or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Baron Health Care
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Baron Health Care |
Bbh Intermediate and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Baron Health
The main advantage of trading using opposite Bbh Intermediate and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Baron Health 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 Baron Health will offset losses from the drop in Baron Health's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Partner Fund |
| Baron Health vs. Federated Pennsylvania Municipal | Baron Health vs. Franklin High Yield | Baron Health vs. Bbh Intermediate Municipal | Baron Health vs. Vanguard California Long Term |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |