Correlation Between Baron Select and Baron Real
Can any of the company-specific risk be diversified away by investing in both Baron Select and Baron Real 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 Select and Baron Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Select Funds and Baron Real Estate, you can compare the effects of market volatilities on Baron Select and Baron Real 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 Select with a short position of Baron Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Select and Baron Real.
Diversification Opportunities for Baron Select and Baron Real
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baron and Baron is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Baron Select Funds and Baron Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Real Estate and Baron Select 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 Select Funds are associated (or correlated) with Baron Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Real Estate has no effect on the direction of Baron Select i.e., Baron Select and Baron Real go up and down completely randomly.
Pair Corralation between Baron Select and Baron Real
Assuming the 90 days horizon Baron Select Funds is expected to generate 1.25 times more return on investment than Baron Real. However, Baron Select is 1.25 times more volatile than Baron Real Estate. It trades about 0.31 of its potential returns per unit of risk. Baron Real Estate is currently generating about 0.07 per unit of risk. If you would invest 1,185 in Baron Select Funds on August 26, 2024 and sell it today you would earn a total of 111.00 from holding Baron Select Funds or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Select Funds vs. Baron Real Estate
Performance |
| Timeline |
| Baron Select Funds |
| Baron Real Estate |
Baron Select and Baron Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Select and Baron Real
The main advantage of trading using opposite Baron Select and Baron Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Select position performs unexpectedly, Baron Real 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 Real will offset losses from the drop in Baron Real's long position.| Baron Select vs. VEEA | Baron Select vs. VivoPower International PLC | Baron Select vs. WEBTOON Entertainment Common | Baron Select vs. Baron Real Estate |
| Baron Real vs. Baron Partners Fund | Baron Real vs. Wells Fargo Advantage | Baron Real vs. Invesco Real Estate | Baron Real vs. Baird Intermediate Bond |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |