Correlation Between Baron Health and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Baron Health and Bbh 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 Health and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Baron Health and Bbh 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 Health with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Bbh Intermediate.
Diversification Opportunities for Baron Health and Bbh Intermediate
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baron and Bbh is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Baron Health 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 Health Care are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Baron Health i.e., Baron Health and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Baron Health and Bbh Intermediate
Assuming the 90 days horizon Baron Health Care is expected to generate 5.0 times more return on investment than Bbh Intermediate. However, Baron Health is 5.0 times more volatile than Bbh Intermediate Municipal. It trades about 0.21 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.09 per unit of risk. If you would invest 1,948 in Baron Health Care on October 24, 2024 and sell it today you would earn a total of 67.00 from holding Baron Health Care or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Health Care vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Baron Health Care |
| Bbh Intermediate Mun |
Baron Health and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Bbh Intermediate
The main advantage of trading using opposite Baron Health and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Bbh 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Baron Health vs. Blackrock Financial Institutions | Baron Health vs. John Hancock Financial | Baron Health vs. Financials Ultrasector Profund | Baron Health vs. T Rowe Price |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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