Correlation Between Baron Emerging and Intrepid Endurance
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Intrepid Endurance 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 Intrepid Endurance 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 Intrepid Endurance Fund, you can compare the effects of market volatilities on Baron Emerging and Intrepid Endurance 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 Intrepid Endurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Intrepid Endurance.
Diversification Opportunities for Baron Emerging and Intrepid Endurance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baron and Intrepid is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Intrepid Endurance Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Endurance 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 Intrepid Endurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Endurance has no effect on the direction of Baron Emerging i.e., Baron Emerging and Intrepid Endurance go up and down completely randomly.
Pair Corralation between Baron Emerging and Intrepid Endurance
Assuming the 90 days horizon Baron Emerging Markets is expected to generate 0.91 times more return on investment than Intrepid Endurance. However, Baron Emerging Markets is 1.1 times less risky than Intrepid Endurance. It trades about 0.04 of its potential returns per unit of risk. Intrepid Endurance Fund is currently generating about 0.03 per unit of risk. If you would invest 1,316 in Baron Emerging Markets on September 2, 2024 and sell it today you would earn a total of 211.00 from holding Baron Emerging Markets or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Baron Emerging Markets vs. Intrepid Endurance Fund
Performance |
| Timeline |
| Baron Emerging Markets |
| Intrepid Endurance |
Baron Emerging and Intrepid Endurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Intrepid Endurance
The main advantage of trading using opposite Baron Emerging and Intrepid Endurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Intrepid Endurance 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 Intrepid Endurance will offset losses from the drop in Intrepid Endurance'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 |
| Intrepid Endurance vs. Amg Yacktman Focused | Intrepid Endurance vs. Intrepid Capital Fund | Intrepid Endurance vs. Heartland Value Plus | Intrepid Endurance vs. Appleseed Fund Appleseed |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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