Correlation Between Baron Real and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Baron Real and Floating Rate 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 Real and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Real Estate and Floating Rate Fund, you can compare the effects of market volatilities on Baron Real and Floating Rate 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 Real with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Real and Floating Rate.
Diversification Opportunities for Baron Real and Floating Rate
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baron and Floating is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Baron Real Estate and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Baron Real 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 Real Estate are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Baron Real i.e., Baron Real and Floating Rate go up and down completely randomly.
Pair Corralation between Baron Real and Floating Rate
Assuming the 90 days horizon Baron Real Estate is expected to generate 8.24 times more return on investment than Floating Rate. However, Baron Real is 8.24 times more volatile than Floating Rate Fund. It trades about 0.08 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.12 per unit of risk. If you would invest 4,016 in Baron Real Estate on November 7, 2024 and sell it today you would earn a total of 79.00 from holding Baron Real Estate or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Real Estate vs. Floating Rate Fund
Performance |
| Timeline |
| Baron Real Estate |
| Floating Rate |
Baron Real and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Real and Floating Rate
The main advantage of trading using opposite Baron Real and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Real position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Baron Real vs. The Hartford Emerging | Baron Real vs. Angel Oak Multi Strategy | Baron Real vs. Nasdaq 100 2x Strategy | Baron Real vs. Morgan Stanley Emerging |
| Floating Rate vs. Simt High Yield | Floating Rate vs. Tiaa Cref High Yield | Floating Rate vs. Multi Manager High Yield | Floating Rate vs. Buffalo High Yield |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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