Correlation Between Access Flex and Baron Small
Can any of the company-specific risk be diversified away by investing in both Access Flex and Baron Small 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 Access Flex and Baron Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Flex High and Baron Small Cap, you can compare the effects of market volatilities on Access Flex and Baron Small 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 Access Flex with a short position of Baron Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Flex and Baron Small.
Diversification Opportunities for Access Flex and Baron Small
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Access and Baron is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Access Flex High and Baron Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Small Cap and Access Flex 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 Access Flex High are associated (or correlated) with Baron Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Small Cap has no effect on the direction of Access Flex i.e., Access Flex and Baron Small go up and down completely randomly.
Pair Corralation between Access Flex and Baron Small
Assuming the 90 days horizon Access Flex is expected to generate 1.21 times less return on investment than Baron Small. But when comparing it to its historical volatility, Access Flex High is 3.64 times less risky than Baron Small. It trades about 0.11 of its potential returns per unit of risk. Baron Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,941 in Baron Small Cap on November 9, 2024 and sell it today you would earn a total of 586.00 from holding Baron Small Cap or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Flex High vs. Baron Small Cap
Performance |
| Timeline |
| Access Flex High |
| Baron Small Cap |
Access Flex and Baron Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Flex and Baron Small
The main advantage of trading using opposite Access Flex and Baron Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Flex position performs unexpectedly, Baron Small 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 Small will offset losses from the drop in Baron Small's long position.| Access Flex vs. Health Care Fund | Access Flex vs. Eaton Vance Worldwide | Access Flex vs. John Hancock Var | Access Flex vs. Tekla Healthcare Investors |
| Baron Small vs. Queens Road Small | Baron Small vs. Ab Small Cap | Baron Small vs. Valic Company I | Baron Small vs. Mid Cap Growth Profund |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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