Correlation Between Baron Durable and Baron Health
Can any of the company-specific risk be diversified away by investing in both Baron Durable and Baron Health 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 Baron Durable and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Durable Advantage and Baron Health Care, you can compare the effects of market volatilities on Baron Durable and Baron Health 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 Baron Durable with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Durable and Baron Health.
Diversification Opportunities for Baron Durable and Baron Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and Baron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron Durable Advantage and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care and Baron Durable 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 Baron Durable Advantage are associated (or correlated) with Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Baron Durable i.e., Baron Durable and Baron Health go up and down completely randomly.
Pair Corralation between Baron Durable and Baron Health
If you would invest (100.00) in Baron Health Care on February 2, 2024 and sell it today you would earn a total of 100.00 from holding Baron Health Care or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Baron Durable Advantage vs. Baron Health Care
Performance |
Timeline |
Baron Durable Advantage |
Baron Health Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baron Durable and Baron Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baron Durable and Baron Health
The main advantage of trading using opposite Baron Durable and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Durable position performs unexpectedly, Baron Health 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 Health will offset losses from the drop in Baron Health's long position.Baron Durable vs. Growth Fund Investor | Baron Durable vs. Ultra Fund Investor | Baron Durable vs. Heritage Fund Investor | Baron Durable vs. International Growth Fund |
Baron Health vs. Guidepath Managed Futures | Baron Health vs. Loomis Sayles Inflation | Baron Health vs. Simt Multi Asset Inflation | Baron Health vs. Rational Inflation Growth |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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