Correlation Between Baron Health and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Baron Health and Mainstay Conservative 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 Mainstay Conservative 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 Mainstay Conservative Allocation, you can compare the effects of market volatilities on Baron Health and Mainstay Conservative 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 Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Mainstay Conservative.
Diversification Opportunities for Baron Health and Mainstay Conservative
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baron and Mainstay is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Mainstay Conservative Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative 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 Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative has no effect on the direction of Baron Health i.e., Baron Health and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Baron Health and Mainstay Conservative
If you would invest 1,787 in Baron Health Care on September 14, 2024 and sell it today you would earn a total of 207.00 from holding Baron Health Care or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Baron Health Care vs. Mainstay Conservative Allocati
Performance |
| Timeline |
| Baron Health Care |
| Mainstay Conservative |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Mainstay Conservative
The main advantage of trading using opposite Baron Health and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Mainstay Conservative 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 Mainstay Conservative will offset losses from the drop in Mainstay Conservative's long position.| Baron Health vs. Ab Bond Inflation | Baron Health vs. Goldman Sachs Inflation | Baron Health vs. Ab Bond Inflation | Baron Health vs. Ab Bond Inflation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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