Correlation Between Barings Active and Baron Focused
Can any of the company-specific risk be diversified away by investing in both Barings Active and Baron Focused 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 Barings Active and Baron Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Active Short and Baron Focused Growth, you can compare the effects of market volatilities on Barings Active and Baron Focused 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 Barings Active with a short position of Baron Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Active and Baron Focused.
Diversification Opportunities for Barings Active and Baron Focused
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Baron is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Barings Active Short and Baron Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Focused Growth and Barings Active 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 Barings Active Short are associated (or correlated) with Baron Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Focused Growth has no effect on the direction of Barings Active i.e., Barings Active and Baron Focused go up and down completely randomly.
Pair Corralation between Barings Active and Baron Focused
Assuming the 90 days horizon Barings Active is expected to generate 51.87 times less return on investment than Baron Focused. But when comparing it to its historical volatility, Barings Active Short is 8.9 times less risky than Baron Focused. It trades about 0.09 of its potential returns per unit of risk. Baron Focused Growth is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 4,105 in Baron Focused Growth on September 1, 2024 and sell it today you would earn a total of 486.00 from holding Baron Focused Growth or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Active Short vs. Baron Focused Growth
Performance |
| Timeline |
| Barings Active Short |
| Baron Focused Growth |
Barings Active and Baron Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Active and Baron Focused
The main advantage of trading using opposite Barings Active and Baron Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Active position performs unexpectedly, Baron Focused 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 Focused will offset losses from the drop in Baron Focused's long position.| Barings Active vs. Ab Bond Inflation | Barings Active vs. Western Asset Inflation | Barings Active vs. Blackrock Inflation Protected | Barings Active vs. Aqr Managed Futures |
| Baron Focused vs. Precious Metals And | Baron Focused vs. Goldman Sachs Esg | Baron Focused vs. Gamco Global Gold | Baron Focused vs. Oppenheimer Gold Special |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |