Correlation Between Baron Health and Voya Multi
Can any of the company-specific risk be diversified away by investing in both Baron Health and Voya Multi 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 Voya Multi 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 Voya Multi Manager International, you can compare the effects of market volatilities on Baron Health and Voya Multi 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 Voya Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Voya Multi.
Diversification Opportunities for Baron Health and Voya Multi
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baron and Voya is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Voya Multi Manager Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Baron Health i.e., Baron Health and Voya Multi go up and down completely randomly.
Pair Corralation between Baron Health and Voya Multi
If you would invest 1,885 in Baron Health Care on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Baron Health Care or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Baron Health Care vs. Voya Multi Manager Internation
Performance |
| Timeline |
| Baron Health Care |
| Voya Multi Manager |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Health and Voya Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Voya Multi
The main advantage of trading using opposite Baron Health and Voya Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Voya Multi 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 Voya Multi will offset losses from the drop in Voya Multi'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 |
| Voya Multi vs. Mutual Of America | Voya Multi vs. Vy Columbia Small | Voya Multi vs. Smallcap Growth Fund | Voya Multi vs. Ab Small Cap |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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