Correlation Between Baron Focused and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Baron Focused and Hartford 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 Baron Focused and Hartford Global 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 Hartford Global Impact, you can compare the effects of market volatilities on Baron Focused and Hartford 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 Baron Focused with a short position of Hartford Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Focused and Hartford Global.
Diversification Opportunities for Baron Focused and Hartford Global
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baron and Hartford is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Baron Focused Growth and Hartford Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global Impact 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 Hartford Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global Impact has no effect on the direction of Baron Focused i.e., Baron Focused and Hartford Global go up and down completely randomly.
Pair Corralation between Baron Focused and Hartford Global
Assuming the 90 days horizon Baron Focused Growth is expected to generate 1.04 times more return on investment than Hartford Global. However, Baron Focused is 1.04 times more volatile than Hartford Global Impact. It trades about 0.26 of its potential returns per unit of risk. Hartford Global Impact is currently generating about 0.04 per unit of risk. If you would invest 4,433 in Baron Focused Growth on September 12, 2024 and sell it today you would earn a total of 152.00 from holding Baron Focused Growth or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Baron Focused Growth vs. Hartford Global Impact
Performance |
| Timeline |
| Baron Focused Growth |
| Hartford Global Impact |
Baron Focused and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Focused and Hartford Global
The main advantage of trading using opposite Baron Focused and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Focused position performs unexpectedly, Hartford 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 Hartford Global will offset losses from the drop in Hartford Global's long position.| Baron Focused vs. Allianzgi Technology Fund | Baron Focused vs. Red Oak Technology | Baron Focused vs. Firsthand Technology Opportunities | Baron Focused vs. Mfs Technology Fund |
| Hartford Global vs. Third Avenue Real | Hartford Global vs. Third Avenue Small Cap | Hartford Global vs. Smead Value Fund | Hartford Global vs. Baron Focused 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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