Correlation Between Baron Durable and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Baron Durable and Federated Kaufmann 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 Durable and Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Durable Advantage and Federated Kaufmann Large, you can compare the effects of market volatilities on Baron Durable and Federated Kaufmann 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 Durable with a short position of Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Durable and Federated Kaufmann.
Diversification Opportunities for Baron Durable and Federated Kaufmann
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baron and Federated is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Baron Durable Advantage and Federated Kaufmann Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann Large and Baron Durable 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 Durable Advantage are associated (or correlated) with Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann Large has no effect on the direction of Baron Durable i.e., Baron Durable and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Baron Durable and Federated Kaufmann
Assuming the 90 days horizon Baron Durable Advantage is expected to generate 0.55 times more return on investment than Federated Kaufmann. However, Baron Durable Advantage is 1.83 times less risky than Federated Kaufmann. It trades about 0.12 of its potential returns per unit of risk. Federated Kaufmann Large is currently generating about 0.02 per unit of risk. If you would invest 1,936 in Baron Durable Advantage on September 4, 2024 and sell it today you would earn a total of 971.00 from holding Baron Durable Advantage or generate 50.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Durable Advantage vs. Federated Kaufmann Large
Performance |
| Timeline |
| Baron Durable Advantage |
| Federated Kaufmann Large |
Baron Durable and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Durable and Federated Kaufmann
The main advantage of trading using opposite Baron Durable and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Durable position performs unexpectedly, Federated Kaufmann 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 Federated Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Baron Durable vs. First Eagle Gold | Baron Durable vs. Fidelity Advisor Gold | Baron Durable vs. James Balanced Golden | Baron Durable vs. Vy Goldman Sachs |
| Federated Kaufmann vs. Gamco Natural Resources | Federated Kaufmann vs. Firsthand Alternative Energy | Federated Kaufmann vs. Clearbridge Energy Mlp | Federated Kaufmann vs. Salient Mlp Energy |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |