Correlation Between Multisector Bond and Baron New
Can any of the company-specific risk be diversified away by investing in both Multisector Bond and Baron New 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 Multisector Bond and Baron New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and Baron New Asia, you can compare the effects of market volatilities on Multisector Bond and Baron New 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 Multisector Bond with a short position of Baron New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and Baron New.
Diversification Opportunities for Multisector Bond and Baron New
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Multisector and Baron is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and Baron New Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron New Asia and Multisector Bond 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 Multisector Bond Sma are associated (or correlated) with Baron New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron New Asia has no effect on the direction of Multisector Bond i.e., Multisector Bond and Baron New go up and down completely randomly.
Pair Corralation between Multisector Bond and Baron New
Assuming the 90 days horizon Multisector Bond is expected to generate 1.32 times less return on investment than Baron New. But when comparing it to its historical volatility, Multisector Bond Sma is 1.88 times less risky than Baron New. It trades about 0.15 of its potential returns per unit of risk. Baron New Asia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 743.00 in Baron New Asia on September 4, 2024 and sell it today you would earn a total of 180.00 from holding Baron New Asia or generate 24.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.77% |
| Values | Daily Returns |
Multisector Bond Sma vs. Baron New Asia
Performance |
| Timeline |
| Multisector Bond Sma |
| Baron New Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Multisector Bond and Baron New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and Baron New
The main advantage of trading using opposite Multisector Bond and Baron New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond position performs unexpectedly, Baron New 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 New will offset losses from the drop in Baron New's long position.| Multisector Bond vs. The National Tax Free | Multisector Bond vs. Artisan High Income | Multisector Bond vs. Versatile Bond Portfolio | Multisector Bond vs. Touchstone Premium Yield |
| Baron New vs. Touchstone Premium Yield | Baron New vs. Calamos Dynamic Convertible | Baron New vs. Blrc Sgy Mnp | Baron New vs. Maryland Tax Free Bond |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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