Correlation Between Baron Fintech and Siit High
Can any of the company-specific risk be diversified away by investing in both Baron Fintech and Siit High 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 Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Fintech and Siit High Yield, you can compare the effects of market volatilities on Baron Fintech and Siit High 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 Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Fintech and Siit High.
Diversification Opportunities for Baron Fintech and Siit High
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baron and Siit is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Baron Fintech and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield 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 Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Baron Fintech i.e., Baron Fintech and Siit High go up and down completely randomly.
Pair Corralation between Baron Fintech and Siit High
Assuming the 90 days horizon Baron Fintech is expected to under-perform the Siit High. In addition to that, Baron Fintech is 3.94 times more volatile than Siit High Yield. It trades about -0.25 of its total potential returns per unit of risk. Siit High Yield is currently generating about 0.17 per unit of volatility. If you would invest 713.00 in Siit High Yield on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Siit High Yield or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Fintech vs. Siit High Yield
Performance |
| Timeline |
| Baron Fintech |
| Siit High Yield |
Baron Fintech and Siit High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Fintech and Siit High
The main advantage of trading using opposite Baron Fintech and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Fintech position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.| Baron Fintech vs. Baron Intl Growth | Baron Fintech vs. Baron Real Estate | Baron Fintech vs. Baron Opportunity Fund | Baron Fintech vs. Baron Real Estate |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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