Correlation Between Baron Fintech and Touchstone Large
Can any of the company-specific risk be diversified away by investing in both Baron Fintech and Touchstone Large 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 Fintech and Touchstone Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Fintech and Touchstone Large Cap, you can compare the effects of market volatilities on Baron Fintech and Touchstone Large 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 Fintech with a short position of Touchstone Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Fintech and Touchstone Large.
Diversification Opportunities for Baron Fintech and Touchstone Large
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baron and Touchstone is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Baron Fintech and Touchstone Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Large Cap and Baron Fintech 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 Fintech are associated (or correlated) with Touchstone Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Large Cap has no effect on the direction of Baron Fintech i.e., Baron Fintech and Touchstone Large go up and down completely randomly.
Pair Corralation between Baron Fintech and Touchstone Large
Assuming the 90 days horizon Baron Fintech is expected to generate 1.31 times more return on investment than Touchstone Large. However, Baron Fintech is 1.31 times more volatile than Touchstone Large Cap. It trades about 0.25 of its potential returns per unit of risk. Touchstone Large Cap is currently generating about 0.18 per unit of risk. If you would invest 1,610 in Baron Fintech on September 4, 2024 and sell it today you would earn a total of 233.00 from holding Baron Fintech or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Fintech vs. Touchstone Large Cap
Performance |
| Timeline |
| Baron Fintech |
| Touchstone Large Cap |
Baron Fintech and Touchstone Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Fintech and Touchstone Large
The main advantage of trading using opposite Baron Fintech and Touchstone Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Fintech position performs unexpectedly, Touchstone Large 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 Touchstone Large will offset losses from the drop in Touchstone Large's long position.| Baron Fintech vs. Touchstone Large Cap | Baron Fintech vs. Principal Lifetime Hybrid | Baron Fintech vs. Rbb Fund | Baron Fintech vs. Volumetric Fund Volumetric |
| Touchstone Large vs. Champlain Mid Cap | Touchstone Large vs. Pace Smallmedium Growth | Touchstone Large vs. Mid Cap Growth | Touchstone Large 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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