Correlation Between Baron Focused and Baron Asset
Can any of the company-specific risk be diversified away by investing in both Baron Focused and Baron Asset 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 Focused and Baron Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Focused Growth and Baron Asset Fund, you can compare the effects of market volatilities on Baron Focused and Baron Asset 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 Focused with a short position of Baron Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Focused and Baron Asset.
Diversification Opportunities for Baron Focused and Baron Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BARON and Baron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Focused Growth and Baron Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Asset Fund and Baron Focused 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 Focused Growth are associated (or correlated) with Baron Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Asset Fund has no effect on the direction of Baron Focused i.e., Baron Focused and Baron Asset go up and down completely randomly.
Pair Corralation between Baron Focused and Baron Asset
If you would invest 11,388 in Baron Asset Fund on September 5, 2024 and sell it today you would earn a total of 675.00 from holding Baron Asset Fund or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Baron Focused Growth vs. Baron Asset Fund
Performance |
| Timeline |
| Baron Focused Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Baron Asset Fund |
Baron Focused and Baron Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Focused and Baron Asset
The main advantage of trading using opposite Baron Focused and Baron Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Focused position performs unexpectedly, Baron Asset 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 Asset will offset losses from the drop in Baron Asset's long position.| Baron Focused vs. California High Yield Municipal | Baron Focused vs. Lind Capital Partners | Baron Focused vs. T Rowe Price | Baron Focused vs. Intermediate Term Tax Free Bond |
| Baron Asset vs. Baron Focused Growth | Baron Asset vs. Baron Partners | Baron Asset vs. Baron Opportunity 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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