Correlation Between Baron Emerging and Guggenheim Macro
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Guggenheim Macro 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 Emerging and Guggenheim Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Emerging Markets and Guggenheim Macro Opportunities, you can compare the effects of market volatilities on Baron Emerging and Guggenheim Macro 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 Emerging with a short position of Guggenheim Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Guggenheim Macro.
Diversification Opportunities for Baron Emerging and Guggenheim Macro
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baron and Guggenheim is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Guggenheim Macro Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Macro Opp and Baron 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 Baron Emerging Markets are associated (or correlated) with Guggenheim Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Macro Opp has no effect on the direction of Baron Emerging i.e., Baron Emerging and Guggenheim Macro go up and down completely randomly.
Pair Corralation between Baron Emerging and Guggenheim Macro
Assuming the 90 days horizon Baron Emerging Markets is expected to generate 4.79 times more return on investment than Guggenheim Macro. However, Baron Emerging is 4.79 times more volatile than Guggenheim Macro Opportunities. It trades about 0.05 of its potential returns per unit of risk. Guggenheim Macro Opportunities is currently generating about 0.18 per unit of risk. If you would invest 1,303 in Baron Emerging Markets on August 26, 2024 and sell it today you would earn a total of 213.00 from holding Baron Emerging Markets or generate 16.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Emerging Markets vs. Guggenheim Macro Opportunities
Performance |
| Timeline |
| Baron Emerging Markets |
| Guggenheim Macro Opp |
Baron Emerging and Guggenheim Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Guggenheim Macro
The main advantage of trading using opposite Baron Emerging and Guggenheim Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Guggenheim Macro 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 Guggenheim Macro will offset losses from the drop in Guggenheim Macro's long position.| Baron Emerging vs. Fidelity International Growth | Baron Emerging vs. Parnassus Mid Cap | Baron Emerging vs. Df Dent Midcap | Baron Emerging vs. Amg Timessquare International |
| Guggenheim Macro vs. Guggenheim Total Return | Guggenheim Macro vs. Guggenheim Floating Rate | Guggenheim Macro vs. Guggenheim Limited Duration | Guggenheim Macro vs. Pimco Incme Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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