Correlation Between Baron Select and Federated Short-intermedia
Can any of the company-specific risk be diversified away by investing in both Baron Select and Federated Short-intermedia 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 Federated Short-intermedia 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 Federated Short Intermediate Duration, you can compare the effects of market volatilities on Baron Select and Federated Short-intermedia 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 Federated Short-intermedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Select and Federated Short-intermedia.
Diversification Opportunities for Baron Select and Federated Short-intermedia
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baron and Federated is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Baron Select Funds and Federated Short Intermediate D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Short-intermedia 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 Federated Short-intermedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Short-intermedia has no effect on the direction of Baron Select i.e., Baron Select and Federated Short-intermedia go up and down completely randomly.
Pair Corralation between Baron Select and Federated Short-intermedia
Assuming the 90 days horizon Baron Select Funds is expected to generate 12.83 times more return on investment than Federated Short-intermedia. However, Baron Select is 12.83 times more volatile than Federated Short Intermediate Duration. It trades about 0.11 of its potential returns per unit of risk. Federated Short Intermediate Duration is currently generating about 0.12 per unit of risk. If you would invest 659.00 in Baron Select Funds on November 27, 2024 and sell it today you would earn a total of 679.00 from holding Baron Select Funds or generate 103.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Select Funds vs. Federated Short Intermediate D
Performance |
| Timeline |
| Baron Select Funds |
| Federated Short-intermedia |
Baron Select and Federated Short-intermedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Select and Federated Short-intermedia
The main advantage of trading using opposite Baron Select and Federated Short-intermedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Select position performs unexpectedly, Federated Short-intermedia 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 Federated Short-intermedia will offset losses from the drop in Federated Short-intermedia's long position.| Baron Select vs. Fidelity Advisor Diversified | Baron Select vs. Lord Abbett Diversified | Baron Select vs. Blackrock Diversified Fixed | Baron Select vs. Delaware Limited Term Diversified |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |