Correlation Between Bond Fund and Baron Global
Can any of the company-specific risk be diversified away by investing in both Bond Fund and Baron Global 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 Bond Fund and Baron Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bond Fund Of and Baron Global Advantage, you can compare the effects of market volatilities on Bond Fund and Baron Global 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 Bond Fund with a short position of Baron Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bond Fund and Baron Global.
Diversification Opportunities for Bond Fund and Baron Global
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bond and Baron is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bond Fund Of and Baron Global Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Global Advantage and Bond Fund 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 Bond Fund Of are associated (or correlated) with Baron Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Global Advantage has no effect on the direction of Bond Fund i.e., Bond Fund and Baron Global go up and down completely randomly.
Pair Corralation between Bond Fund and Baron Global
Assuming the 90 days horizon Bond Fund Of is expected to under-perform the Baron Global. But the mutual fund apears to be less risky and, when comparing its historical volatility, Bond Fund Of is 3.85 times less risky than Baron Global. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Baron Global Advantage is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 3,551 in Baron Global Advantage on August 27, 2024 and sell it today you would earn a total of 306.00 from holding Baron Global Advantage or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bond Fund Of vs. Baron Global Advantage
Performance |
| Timeline |
| Bond Fund |
| Baron Global Advantage |
Bond Fund and Baron Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bond Fund and Baron Global
The main advantage of trading using opposite Bond Fund and Baron Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bond Fund position performs unexpectedly, Baron Global 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 Baron Global will offset losses from the drop in Baron Global's long position.| Bond Fund vs. American High Income | Bond Fund vs. Europacific Growth Fund | Bond Fund vs. Capital World Bond | Bond Fund vs. Growth Fund Of |
| Baron Global vs. Baron Opportunity Fund | Baron Global vs. Morgan Stanley Multi | Baron Global vs. Baron Focused Growth | Baron Global vs. Mid Cap Growth |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |