Correlation Between VEEA and Baron Select
Can any of the company-specific risk be diversified away by investing in both VEEA and Baron Select 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 Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VEEA and Baron Select Funds, you can compare the effects of market volatilities on VEEA and Baron Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of VEEA and Baron Select.
Diversification Opportunities for VEEA and Baron Select
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VEEA and Baron is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding VEEA and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of VEEA i.e., VEEA and Baron Select go up and down completely randomly.
Pair Corralation between VEEA and Baron Select
Given the investment horizon of 90 days VEEA is expected to under-perform the Baron Select. In addition to that, VEEA is 14.71 times more volatile than Baron Select Funds. It trades about -0.06 of its total potential returns per unit of risk. Baron Select Funds is currently generating about 0.12 per unit of volatility. If you would invest 859.00 in Baron Select Funds on August 25, 2024 and sell it today you would earn a total of 446.00 from holding Baron Select Funds or generate 51.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.2% |
| Values | Daily Returns |
VEEA vs. Baron Select Funds
Performance |
| Timeline |
| VEEA |
| Baron Select Funds |
VEEA and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VEEA and Baron Select
The main advantage of trading using opposite VEEA and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VEEA position performs unexpectedly, Baron Select 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 Select will offset losses from the drop in Baron Select's long position.The idea behind VEEA and Baron Select Funds 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 Select vs. VEEA | Baron Select vs. VivoPower International PLC | Baron Select vs. WEBTOON Entertainment Common | Baron Select vs. Baron Real Estate |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |