Correlation Between Sgi Prudent and Baron Health
Can any of the company-specific risk be diversified away by investing in both Sgi Prudent 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 Sgi Prudent and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sgi Prudent Growth and Baron Health Care, you can compare the effects of market volatilities on Sgi Prudent 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 Sgi Prudent with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sgi Prudent and Baron Health.
Diversification Opportunities for Sgi Prudent and Baron Health
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sgi and Baron is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sgi Prudent 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 Sgi Prudent 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 Sgi Prudent 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 Sgi Prudent i.e., Sgi Prudent and Baron Health go up and down completely randomly.
Pair Corralation between Sgi Prudent and Baron Health
Assuming the 90 days horizon Sgi Prudent Growth is expected to generate 0.63 times more return on investment than Baron Health. However, Sgi Prudent Growth is 1.58 times less risky than Baron Health. It trades about 0.06 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.01 per unit of risk. If you would invest 1,024 in Sgi Prudent Growth on November 3, 2024 and sell it today you would earn a total of 84.00 from holding Sgi Prudent Growth or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sgi Prudent Growth vs. Baron Health Care
Performance |
| Timeline |
| Sgi Prudent Growth |
| Baron Health Care |
Sgi Prudent and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sgi Prudent and Baron Health
The main advantage of trading using opposite Sgi Prudent and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sgi Prudent 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.| Sgi Prudent vs. Artisan High Income | Sgi Prudent vs. Goldman Sachs Short | Sgi Prudent vs. Multisector Bond Sma | Sgi Prudent vs. Gmo Emerging Ntry |
| Baron Health vs. Chestnut Street Exchange | Baron Health vs. Ab Government Exchange | Baron Health vs. Schwab Government Money | Baron Health vs. Financial Industries 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |