Correlation Between Scout E and Baron Global
Can any of the company-specific risk be diversified away by investing in both Scout E and Baron Global 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 Scout E and Baron Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout E Plus and Baron Global Advantage, you can compare the effects of market volatilities on Scout E and Baron Global 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 Scout E with a short position of Baron Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout E and Baron Global.
Diversification Opportunities for Scout E and Baron Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scout and Baron is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Scout E Plus and Baron Global Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Global Advantage and Scout E 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 Scout E Plus are associated (or correlated) with Baron Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Global Advantage has no effect on the direction of Scout E i.e., Scout E and Baron Global go up and down completely randomly.
Pair Corralation between Scout E and Baron Global
If you would invest 3,551 in Baron Global Advantage on August 28, 2024 and sell it today you would earn a total of 306.00 from holding Baron Global Advantage or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Scout E Plus vs. Baron Global Advantage
Performance |
| Timeline |
| Scout E Plus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron Global Advantage |
Scout E and Baron Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout E and Baron Global
The main advantage of trading using opposite Scout E and Baron Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout E position performs unexpectedly, Baron Global 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 Global will offset losses from the drop in Baron Global's long position.The idea behind Scout E Plus and Baron Global Advantage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Baron Global vs. Baron Opportunity Fund | Baron Global vs. Morgan Stanley Multi | Baron Global vs. Baron Focused Growth | Baron Global vs. Mid Cap 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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