Correlation Between Baron Health and Altegris Equity
Can any of the company-specific risk be diversified away by investing in both Baron Health and Altegris Equity 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 Altegris Equity 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 Altegris Equity Long, you can compare the effects of market volatilities on Baron Health and Altegris Equity 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 Altegris Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Altegris Equity.
Diversification Opportunities for Baron Health and Altegris Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and Altegris is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Altegris Equity Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altegris Equity Long 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 Altegris Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altegris Equity Long has no effect on the direction of Baron Health i.e., Baron Health and Altegris Equity go up and down completely randomly.
Pair Corralation between Baron Health and Altegris Equity
If you would invest 1,948 in Baron Health Care on October 24, 2024 and sell it today you would earn a total of 64.00 from holding Baron Health Care or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Baron Health Care vs. Altegris Equity Long
Performance |
| Timeline |
| Baron Health Care |
| Altegris Equity Long |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and Altegris Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Altegris Equity
The main advantage of trading using opposite Baron Health and Altegris Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Altegris Equity 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 Altegris Equity will offset losses from the drop in Altegris Equity's long position.| Baron Health vs. Advent Claymore Convertible | Baron Health vs. Virtus Convertible | Baron Health vs. Rationalpier 88 Convertible | Baron Health vs. Fidelity Sai Convertible |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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