Correlation Between VivoPower International and Baron Select
Can any of the company-specific risk be diversified away by investing in both VivoPower International 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 VivoPower International and Baron Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VivoPower International PLC and Baron Select Funds, you can compare the effects of market volatilities on VivoPower International 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 VivoPower International with a short position of Baron Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of VivoPower International and Baron Select.
Diversification Opportunities for VivoPower International and Baron Select
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VivoPower and Baron is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding VivoPower International PLC 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 VivoPower International 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 VivoPower International PLC 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 VivoPower International i.e., VivoPower International and Baron Select go up and down completely randomly.
Pair Corralation between VivoPower International and Baron Select
Given the investment horizon of 90 days VivoPower International PLC is expected to under-perform the Baron Select. In addition to that, VivoPower International is 9.57 times more volatile than Baron Select Funds. It trades about -0.02 of its total potential returns per unit of risk. Baron Select Funds is currently generating about 0.22 per unit of volatility. If you would invest 1,090 in Baron Select Funds on August 29, 2024 and sell it today you would earn a total of 218.00 from holding Baron Select Funds or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VivoPower International PLC vs. Baron Select Funds
Performance |
| Timeline |
| VivoPower International |
| Baron Select Funds |
VivoPower International and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VivoPower International and Baron Select
The main advantage of trading using opposite VivoPower International and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VivoPower International 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.| VivoPower International vs. Emeren Group | VivoPower International vs. Tigo Energy | VivoPower International vs. Sunrun Inc | VivoPower International vs. Sunnova Energy International |
| Baron Select vs. Franklin Federal Limited Term | Baron Select vs. Federated Short Intermediate Duration | Baron Select vs. Locorr Longshort Modities | Baron Select vs. Vanguard Short Term Federal |
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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