Correlation Between Exela Technologies and Baron Select
Can any of the company-specific risk be diversified away by investing in both Exela Technologies 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 Exela Technologies and Baron Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Baron Select Funds, you can compare the effects of market volatilities on Exela Technologies 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 Exela Technologies with a short position of Baron Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Baron Select.
Diversification Opportunities for Exela Technologies and Baron Select
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Baron is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred 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 Exela Technologies 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 Exela Technologies Preferred 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 Exela Technologies i.e., Exela Technologies and Baron Select go up and down completely randomly.
Pair Corralation between Exela Technologies and Baron Select
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Baron Select. In addition to that, Exela Technologies is 3.38 times more volatile than Baron Select Funds. It trades about -0.13 of its total potential returns per unit of risk. Baron Select Funds is currently generating about 0.11 per unit of volatility. If you would invest 1,068 in Baron Select Funds on August 25, 2024 and sell it today you would earn a total of 237.00 from holding Baron Select Funds or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.7% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Baron Select Funds
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baron Select Funds |
Exela Technologies and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Baron Select
The main advantage of trading using opposite Exela Technologies and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies 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.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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