Correlation Between Aig Government and Baron Growth
Can any of the company-specific risk be diversified away by investing in both Aig Government and Baron Growth 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 Aig Government and Baron Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Baron Growth Fund, you can compare the effects of market volatilities on Aig Government and Baron Growth 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 Aig Government with a short position of Baron Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Baron Growth.
Diversification Opportunities for Aig Government and Baron Growth
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aig and Baron is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Baron Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Growth and Aig Government 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 Aig Government Money are associated (or correlated) with Baron Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Growth has no effect on the direction of Aig Government i.e., Aig Government and Baron Growth go up and down completely randomly.
Pair Corralation between Aig Government and Baron Growth
Assuming the 90 days horizon Aig Government is expected to generate 4.48 times less return on investment than Baron Growth. But when comparing it to its historical volatility, Aig Government Money is 4.99 times less risky than Baron Growth. It trades about 0.05 of its potential returns per unit of risk. Baron Growth Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,924 in Baron Growth Fund on September 12, 2024 and sell it today you would earn a total of 2,102 from holding Baron Growth Fund or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Baron Growth Fund
Performance |
| Timeline |
| Aig Government Money |
| Baron Growth |
Aig Government and Baron Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Baron Growth
The main advantage of trading using opposite Aig Government and Baron Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Baron Growth 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 Growth will offset losses from the drop in Baron Growth's long position.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
| Baron Growth vs. Aig Government Money | Baron Growth vs. Elfun Government Money | Baron Growth vs. Schwab Government Money | Baron Growth vs. Long Term Government 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 Stocks Directory module to find actively traded stocks across global markets.
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