Correlation Between Baron Fintech and Baron Small
Can any of the company-specific risk be diversified away by investing in both Baron Fintech and Baron Small 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 Baron Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Fintech and Baron Small Cap, you can compare the effects of market volatilities on Baron Fintech and Baron Small 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 Baron Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Fintech and Baron Small.
Diversification Opportunities for Baron Fintech and Baron Small
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baron and Baron is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Baron Fintech and Baron Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Small 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 Baron Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Small Cap has no effect on the direction of Baron Fintech i.e., Baron Fintech and Baron Small go up and down completely randomly.
Pair Corralation between Baron Fintech and Baron Small
Assuming the 90 days horizon Baron Fintech is expected to generate 0.8 times more return on investment than Baron Small. However, Baron Fintech is 1.25 times less risky than Baron Small. It trades about 0.1 of its potential returns per unit of risk. Baron Small Cap is currently generating about 0.07 per unit of risk. If you would invest 1,176 in Baron Fintech on September 3, 2024 and sell it today you would earn a total of 690.00 from holding Baron Fintech or generate 58.67% 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. Baron Small Cap
Performance |
| Timeline |
| Baron Fintech |
| Baron Small Cap |
Baron Fintech and Baron Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Fintech and Baron Small
The main advantage of trading using opposite Baron Fintech and Baron Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Fintech position performs unexpectedly, Baron Small 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 Small will offset losses from the drop in Baron Small's long position.| Baron Fintech vs. Hood River New | Baron Fintech vs. Franklin Lifesmart 2050 | Baron Fintech vs. T Rowe Price | Baron Fintech vs. Legg Mason Partners |
| Baron Small vs. Calamos Market Neutral | Baron Small vs. Kinetics Market Opportunities | Baron Small vs. Templeton Developing Markets | Baron Small vs. Mondrian Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |