Correlation Between Baron Health and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Baron Health and Prudential Jennison 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 Prudential Jennison 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 Prudential Jennison 2020, you can compare the effects of market volatilities on Baron Health and Prudential Jennison 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 Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Prudential Jennison.
Diversification Opportunities for Baron Health and Prudential Jennison
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and Prudential is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Prudential Jennison 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison 2020 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 Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison 2020 has no effect on the direction of Baron Health i.e., Baron Health and Prudential Jennison go up and down completely randomly.
Pair Corralation between Baron Health and Prudential Jennison
If you would invest 2,050 in Baron Health Care on September 2, 2024 and sell it today you would earn a total of 21.00 from holding Baron Health Care or generate 1.02% 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. Prudential Jennison 2020
Performance |
| Timeline |
| Baron Health Care |
| Prudential Jennison 2020 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Prudential Jennison
The main advantage of trading using opposite Baron Health and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Baron Health vs. Lgm Risk Managed | Baron Health vs. Western Asset High | Baron Health vs. Pace High Yield | Baron Health vs. Pioneer High Yield |
| Prudential Jennison vs. Baillie Gifford Health | Prudential Jennison vs. Baron Health Care | Prudential Jennison vs. Invesco Global Health | Prudential Jennison vs. Delaware Healthcare Fund |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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