Correlation Between Baron Emerging and International Value
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and International Value 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 International Value 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 International Value Fund, you can compare the effects of market volatilities on Baron Emerging and International Value 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 International Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and International Value.
Diversification Opportunities for Baron Emerging and International Value
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baron and International is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and International Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Value 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 International Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Value has no effect on the direction of Baron Emerging i.e., Baron Emerging and International Value go up and down completely randomly.
Pair Corralation between Baron Emerging and International Value
Assuming the 90 days horizon Baron Emerging Markets is expected to generate 1.09 times more return on investment than International Value. However, Baron Emerging is 1.09 times more volatile than International Value Fund. It trades about 0.04 of its potential returns per unit of risk. International Value Fund is currently generating about 0.01 per unit of risk. If you would invest 1,432 in Baron Emerging Markets on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Baron Emerging Markets or generate 5.66% 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. International Value Fund
Performance |
| Timeline |
| Baron Emerging Markets |
| International Value |
Baron Emerging and International Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and International Value
The main advantage of trading using opposite Baron Emerging and International Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, International Value 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 International Value will offset losses from the drop in International Value'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 |
| International Value vs. Ultra Short Fixed Income | International Value vs. Us Strategic Equity | International Value vs. The Hartford Equity | International Value vs. Rbc Global Equity |
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 CEOs Directory module to screen CEOs from public companies around the world.
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