Correlation Between Baron Health and Pace Strategic
Can any of the company-specific risk be diversified away by investing in both Baron Health and Pace Strategic 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 Pace Strategic 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 Pace Strategic Fixed, you can compare the effects of market volatilities on Baron Health and Pace Strategic 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 Pace Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Pace Strategic.
Diversification Opportunities for Baron Health and Pace Strategic
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baron and Pace is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Pace Strategic Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Strategic Fixed 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 Pace Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Strategic Fixed has no effect on the direction of Baron Health i.e., Baron Health and Pace Strategic go up and down completely randomly.
Pair Corralation between Baron Health and Pace Strategic
If you would invest 1,173 in Pace Strategic Fixed on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Pace Strategic Fixed or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Baron Health Care vs. Pace Strategic Fixed
Performance |
| Timeline |
| Baron Health Care |
| Pace Strategic Fixed |
Baron Health and Pace Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Pace Strategic
The main advantage of trading using opposite Baron Health and Pace Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Pace Strategic 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 Pace Strategic will offset losses from the drop in Pace Strategic's long position.| Baron Health vs. Multisector Bond Sma | Baron Health vs. Franklin High Yield | Baron Health vs. Bbh Intermediate Municipal | Baron Health vs. Blrc Sgy Mnp |
| Pace Strategic vs. Baron Health Care | Pace Strategic vs. Hartford Healthcare Hls | Pace Strategic vs. Tekla Healthcare Investors | Pace Strategic vs. Eventide Healthcare Life |
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 CEOs Directory module to screen CEOs from public companies around the world.
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