Correlation Between Baron Global and Scout E
Can any of the company-specific risk be diversified away by investing in both Baron Global and Scout E 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 Scout E 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 Scout E Bond, you can compare the effects of market volatilities on Baron Global and Scout E 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 Scout E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Global and Scout E.
Diversification Opportunities for Baron Global and Scout E
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baron and SCOUT is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Baron Global Advantage and Scout E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout E Bond 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 Scout E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout E Bond has no effect on the direction of Baron Global i.e., Baron Global and Scout E go up and down completely randomly.
Pair Corralation between Baron Global and Scout E
If you would invest 3,551 in Baron Global Advantage on August 27, 2024 and sell it today you would earn a total of 306.00 from holding Baron Global Advantage or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Baron Global Advantage vs. Scout E Bond
Performance |
| Timeline |
| Baron Global Advantage |
| Scout E Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Global and Scout E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Global and Scout E
The main advantage of trading using opposite Baron Global and Scout E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Global position performs unexpectedly, Scout E 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 Scout E will offset losses from the drop in Scout E's long position.| Baron Global vs. Baron Opportunity Fund | Baron Global vs. Morgan Stanley Multi | Baron Global vs. Baron Focused Growth | Baron Global vs. Mid Cap Growth |
| Scout E vs. American Funds Strategic | Scout E vs. Baron Global Advantage | Scout E vs. Fidelity Intermediate Treasury | Scout E vs. American Funds Porate |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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