Correlation Between Baron Growth and Osterweis Emerging
Can any of the company-specific risk be diversified away by investing in both Baron Growth and Osterweis Emerging 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 Growth and Osterweis Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Growth Fund and Osterweis Emerging Opportunity, you can compare the effects of market volatilities on Baron Growth and Osterweis Emerging 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 Growth with a short position of Osterweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Growth and Osterweis Emerging.
Diversification Opportunities for Baron Growth and Osterweis Emerging
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baron and Osterweis is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Baron Growth Fund and Osterweis Emerging Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Emerging and Baron Growth 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 Growth Fund are associated (or correlated) with Osterweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Emerging has no effect on the direction of Baron Growth i.e., Baron Growth and Osterweis Emerging go up and down completely randomly.
Pair Corralation between Baron Growth and Osterweis Emerging
Assuming the 90 days horizon Baron Growth is expected to generate 1.22 times less return on investment than Osterweis Emerging. But when comparing it to its historical volatility, Baron Growth Fund is 1.35 times less risky than Osterweis Emerging. It trades about 0.35 of its potential returns per unit of risk. Osterweis Emerging Opportunity is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,751 in Osterweis Emerging Opportunity on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Osterweis Emerging Opportunity or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Growth Fund vs. Osterweis Emerging Opportunity
Performance |
| Timeline |
| Baron Growth |
| Osterweis Emerging |
Baron Growth and Osterweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Growth and Osterweis Emerging
The main advantage of trading using opposite Baron Growth and Osterweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Growth position performs unexpectedly, Osterweis Emerging 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 Osterweis Emerging will offset losses from the drop in Osterweis Emerging's long position.| Baron Growth vs. Baron Asset Fund | Baron Growth vs. Baron Small Cap | Baron Growth vs. Baron Partners Fund | Baron Growth vs. Fidelity Diversified International |
| Osterweis Emerging vs. Blue Current Global | Osterweis Emerging vs. Ms Global Fixed | Osterweis Emerging vs. Morgan Stanley Global | Osterweis Emerging vs. Wisdomtree Siegel Global |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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