Correlation Between Harbor Strategic and Baron Health
Can any of the company-specific risk be diversified away by investing in both Harbor Strategic and Baron Health 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 Harbor Strategic and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Strategic Growth and Baron Health Care, you can compare the effects of market volatilities on Harbor Strategic and Baron Health 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 Harbor Strategic with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Strategic and Baron Health.
Diversification Opportunities for Harbor Strategic and Baron Health
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harbor and Baron is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Strategic Growth and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care and Harbor Strategic 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 Harbor Strategic Growth are associated (or correlated) with Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Harbor Strategic i.e., Harbor Strategic and Baron Health go up and down completely randomly.
Pair Corralation between Harbor Strategic and Baron Health
Assuming the 90 days horizon Harbor Strategic Growth is expected to generate 1.0 times more return on investment than Baron Health. However, Harbor Strategic is 1.0 times more volatile than Baron Health Care. It trades about 0.08 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.04 per unit of risk. If you would invest 2,368 in Harbor Strategic Growth on August 29, 2024 and sell it today you would earn a total of 205.00 from holding Harbor Strategic Growth or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Strategic Growth vs. Baron Health Care
Performance |
| Timeline |
| Harbor Strategic Growth |
| Baron Health Care |
Harbor Strategic and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Strategic and Baron Health
The main advantage of trading using opposite Harbor Strategic and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Strategic position performs unexpectedly, Baron Health 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 Health will offset losses from the drop in Baron Health's long position.| Harbor Strategic vs. Deutsche Health And | Harbor Strategic vs. Live Oak Health | Harbor Strategic vs. Blackrock Health Sciences | Harbor Strategic vs. Baron Health Care |
| Baron Health vs. Baron Discovery Fund | Baron Health vs. Baron Global Advantage | Baron Health vs. Baron Real Estate | Baron Health vs. Baron Focused Growth |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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