Correlation Between Baron Health and Payden Floating
Can any of the company-specific risk be diversified away by investing in both Baron Health and Payden Floating 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 Payden Floating 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 Payden Floating Rate, you can compare the effects of market volatilities on Baron Health and Payden Floating 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 Payden Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Payden Floating.
Diversification Opportunities for Baron Health and Payden Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and Payden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Payden Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Floating Rate 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 Payden Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Floating Rate has no effect on the direction of Baron Health i.e., Baron Health and Payden Floating go up and down completely randomly.
Pair Corralation between Baron Health and Payden Floating
If you would invest 2,043 in Baron Health Care on September 5, 2024 and sell it today you would earn a total of 17.00 from holding Baron Health Care or generate 0.83% 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. Payden Floating Rate
Performance |
| Timeline |
| Baron Health Care |
| Payden Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and Payden Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Payden Floating
The main advantage of trading using opposite Baron Health and Payden Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Payden Floating 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 Payden Floating will offset losses from the drop in Payden Floating's long position.| Baron Health vs. Baron Discovery Fund | Baron Health vs. Baron Global Advantage | Baron Health vs. Baron Real Estate | Baron Health vs. Baron Focused Growth |
| Payden Floating vs. Baron Health Care | Payden Floating vs. Health Biotchnology Portfolio | Payden Floating vs. Live Oak Health | Payden Floating vs. Deutsche Health And |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |