Correlation Between Baron New and Baron New
Can any of the company-specific risk be diversified away by investing in both Baron New and Baron New 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 New and Baron New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron New Asia and Baron New Asia, you can compare the effects of market volatilities on Baron New and Baron New 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 New with a short position of Baron New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron New and Baron New.
Diversification Opportunities for Baron New and Baron New
No risk reduction
The 3 months correlation between Baron and Baron is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Baron New Asia and Baron New Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron New Asia and Baron New 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 New Asia are associated (or correlated) with Baron New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron New Asia has no effect on the direction of Baron New i.e., Baron New and Baron New go up and down completely randomly.
Pair Corralation between Baron New and Baron New
Assuming the 90 days horizon Baron New Asia is expected to under-perform the Baron New. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baron New Asia is 1.05 times less risky than Baron New. The mutual fund trades about -0.28 of its potential returns per unit of risk. The Baron New Asia is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Baron New Asia on August 29, 2024 and sell it today you would lose (9.00) from holding Baron New Asia or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron New Asia vs. Baron New Asia
Performance |
| Timeline |
| Baron New Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron New Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron New and Baron New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron New and Baron New
The main advantage of trading using opposite Baron New and Baron New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron New position performs unexpectedly, Baron New 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 Baron New will offset losses from the drop in Baron New's long position.| Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron Small Cap |
| Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron Real Estate | Baron New vs. Baron 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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