Correlation Between Baron Emerging and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Hartford Small 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 Hartford Small 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 Hartford Small Pany, you can compare the effects of market volatilities on Baron Emerging and Hartford Small 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 Hartford Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Hartford Small.
Diversification Opportunities for Baron Emerging and Hartford Small
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baron and Hartford is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Hartford Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small Pany 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 Hartford Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small Pany has no effect on the direction of Baron Emerging i.e., Baron Emerging and Hartford Small go up and down completely randomly.
Pair Corralation between Baron Emerging and Hartford Small
Assuming the 90 days horizon Baron Emerging is expected to generate 2.09 times less return on investment than Hartford Small. But when comparing it to its historical volatility, Baron Emerging Markets is 1.36 times less risky than Hartford Small. It trades about 0.04 of its potential returns per unit of risk. Hartford Small Pany is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,417 in Hartford Small Pany on September 3, 2024 and sell it today you would earn a total of 509.00 from holding Hartford Small Pany or generate 35.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Emerging Markets vs. Hartford Small Pany
Performance |
| Timeline |
| Baron Emerging Markets |
| Hartford Small Pany |
Baron Emerging and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Hartford Small
The main advantage of trading using opposite Baron Emerging and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Hartford Small 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 Hartford Small will offset losses from the drop in Hartford Small's long position.| Baron Emerging vs. Eaton Vance Income | Baron Emerging vs. Baird Aggregate Bond | Baron Emerging vs. Champlain Small | Baron Emerging vs. Mfs Emerging Markets |
| Hartford Small vs. Pace Smallmedium Growth | Hartford Small vs. William Blair Growth | Hartford Small vs. Goldman Sachs Growth | Hartford Small vs. T Rowe Price |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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