Correlation Between VEEA and Baron Asset
Can any of the company-specific risk be diversified away by investing in both VEEA and Baron Asset 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 VEEA and Baron Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEEA and Baron Asset Fund, you can compare the effects of market volatilities on VEEA and Baron Asset 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 VEEA with a short position of Baron Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEEA and Baron Asset.
Diversification Opportunities for VEEA and Baron Asset
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between VEEA and Baron is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding VEEA and Baron Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Asset Fund and VEEA 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 VEEA are associated (or correlated) with Baron Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Asset Fund has no effect on the direction of VEEA i.e., VEEA and Baron Asset go up and down completely randomly.
Pair Corralation between VEEA and Baron Asset
Given the investment horizon of 90 days VEEA is expected to under-perform the Baron Asset. In addition to that, VEEA is 5.93 times more volatile than Baron Asset Fund. It trades about -0.39 of its total potential returns per unit of risk. Baron Asset Fund is currently generating about 0.21 per unit of volatility. If you would invest 10,739 in Baron Asset Fund on August 25, 2024 and sell it today you would earn a total of 521.00 from holding Baron Asset Fund or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VEEA vs. Baron Asset Fund
Performance |
| Timeline |
| VEEA |
| Baron Asset Fund |
VEEA and Baron Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEEA and Baron Asset
The main advantage of trading using opposite VEEA and Baron Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEEA position performs unexpectedly, Baron Asset 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 Asset will offset losses from the drop in Baron Asset's long position.The idea behind VEEA and Baron Asset Fund 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 Asset vs. Baron Real Estate | Baron Asset vs. Baron Real Estate | Baron Asset vs. Baron Real Estate | Baron Asset vs. Baron Small Cap |
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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