Correlation Between Baron Health and American Independence
Can any of the company-specific risk be diversified away by investing in both Baron Health and American Independence 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 American Independence 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 American Independence Kansas, you can compare the effects of market volatilities on Baron Health and American Independence 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 American Independence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and American Independence.
Diversification Opportunities for Baron Health and American Independence
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and American Independence Kansas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Independence 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 American Independence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Independence has no effect on the direction of Baron Health i.e., Baron Health and American Independence go up and down completely randomly.
Pair Corralation between Baron Health and American Independence
If you would invest 1,787 in Baron Health Care on September 15, 2024 and sell it today you would earn a total of 205.00 from holding Baron Health Care or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Baron Health Care vs. American Independence Kansas
Performance |
| Timeline |
| Baron Health Care |
| American Independence |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and American Independence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and American Independence
The main advantage of trading using opposite Baron Health and American Independence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, American Independence 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 American Independence will offset losses from the drop in American Independence's long position.| Baron Health vs. Multisector Bond Sma | Baron Health vs. T Rowe Price | Baron Health vs. Touchstone Premium Yield | Baron Health vs. Alliancebernstein National Municipal |
| American Independence vs. Lord Abbett Health | American Independence vs. Baillie Gifford Health | American Independence vs. Baron Health Care | American Independence vs. Health Biotchnology Portfolio |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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