Correlation Between Baron Health and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Baron Health and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Baron Health and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Strategic Asset.
Diversification Opportunities for Baron Health and Strategic Asset
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baron and Strategic is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Baron Health i.e., Baron Health and Strategic Asset go up and down completely randomly.
Pair Corralation between Baron Health and Strategic Asset
Assuming the 90 days horizon Baron Health Care is expected to under-perform the Strategic Asset. In addition to that, Baron Health is 2.23 times more volatile than Strategic Asset Management. It trades about -0.17 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.09 per unit of volatility. If you would invest 2,451 in Strategic Asset Management on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Strategic Asset Management or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Health Care vs. Strategic Asset Management
Performance |
| Timeline |
| Baron Health Care |
| Strategic Asset Mana |
Baron Health and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Strategic Asset
The main advantage of trading using opposite Baron Health and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Baron Health vs. Guidemark Large Cap | Baron Health vs. Old Westbury Large | Baron Health vs. Alternative Asset Allocation | Baron Health vs. Pace Large Growth |
| Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. Strategic Asset Management | Strategic Asset vs. International Equity Index |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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