Correlation Between Eic Value and Baron Growth
Can any of the company-specific risk be diversified away by investing in both Eic Value and Baron Growth 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 Eic Value and Baron Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Baron Growth Fund, you can compare the effects of market volatilities on Eic Value and Baron Growth 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 Eic Value with a short position of Baron Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Baron Growth.
Diversification Opportunities for Eic Value and Baron Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eic and Baron is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Baron Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Growth and Eic Value 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 Eic Value Fund are associated (or correlated) with Baron Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Growth has no effect on the direction of Eic Value i.e., Eic Value and Baron Growth go up and down completely randomly.
Pair Corralation between Eic Value and Baron Growth
Assuming the 90 days horizon Eic Value Fund is expected to under-perform the Baron Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Eic Value Fund is 1.33 times less risky than Baron Growth. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Baron Growth Fund is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 11,078 in Baron Growth Fund on September 12, 2024 and sell it today you would lose (52.00) from holding Baron Growth Fund or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Baron Growth Fund
Performance |
| Timeline |
| Eic Value Fund |
| Baron Growth |
Eic Value and Baron Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Baron Growth
The main advantage of trading using opposite Eic Value and Baron Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Baron Growth 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 Growth will offset losses from the drop in Baron Growth's long position.| Eic Value vs. Fidelity Advisor Diversified | Eic Value vs. Oppenheimer International Diversified | Eic Value vs. Blackrock Sm Cap | Eic Value vs. Delaware Limited Term Diversified |
| Baron Growth vs. Aig Government Money | Baron Growth vs. Elfun Government Money | Baron Growth vs. Schwab Government Money | Baron Growth vs. Long Term Government Fund |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |