Correlation Between Baron Global and Fidelity Intermediate
Can any of the company-specific risk be diversified away by investing in both Baron Global and Fidelity Intermediate 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 Global and Fidelity Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Global Advantage and Fidelity Intermediate Treasury, you can compare the effects of market volatilities on Baron Global and Fidelity Intermediate 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 Global with a short position of Fidelity Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Global and Fidelity Intermediate.
Diversification Opportunities for Baron Global and Fidelity Intermediate
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BARON and Fidelity is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Baron Global Advantage and Fidelity Intermediate Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Intermediate and Baron Global 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 Global Advantage are associated (or correlated) with Fidelity Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Intermediate has no effect on the direction of Baron Global i.e., Baron Global and Fidelity Intermediate go up and down completely randomly.
Pair Corralation between Baron Global and Fidelity Intermediate
Assuming the 90 days horizon Baron Global Advantage is expected to generate 2.92 times more return on investment than Fidelity Intermediate. However, Baron Global is 2.92 times more volatile than Fidelity Intermediate Treasury. It trades about 0.35 of its potential returns per unit of risk. Fidelity Intermediate Treasury is currently generating about 0.06 per unit of risk. If you would invest 3,553 in Baron Global Advantage on August 31, 2024 and sell it today you would earn a total of 328.00 from holding Baron Global Advantage or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Global Advantage vs. Fidelity Intermediate Treasury
Performance |
| Timeline |
| Baron Global Advantage |
| Fidelity Intermediate |
Baron Global and Fidelity Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Global and Fidelity Intermediate
The main advantage of trading using opposite Baron Global and Fidelity Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Global position performs unexpectedly, Fidelity Intermediate 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 Fidelity Intermediate will offset losses from the drop in Fidelity Intermediate's long position.| Baron Global vs. American Funds New | Baron Global vs. New Perspective Fund | Baron Global vs. New Perspective Fund | Baron Global vs. New Perspective Fund |
| Fidelity Intermediate vs. Vanguard Gnma Fund | Fidelity Intermediate vs. Us Government Securities | Fidelity Intermediate vs. American Funds Government | Fidelity Intermediate vs. Fidelity Sai Treasury |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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