Correlation Between Baron New and Baron New

Can any of the company-specific risk be diversified away by investing in both Baron New and Baron New 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 New and Baron New into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baron New Asia and Baron New Asia, you can compare the effects of market volatilities on Baron New and Baron New 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 New with a short position of Baron New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron New and Baron New.

Diversification Opportunities for Baron New and Baron New

1.0

Correlation Coefficient

Baron New  Baron New

No risk reduction

The 3 months correlation between Baron and Baron is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Baron New Asia and Baron New Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron New Asia and Baron New 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 New Asia are associated (or correlated) with Baron New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron New Asia has no effect on the direction of Baron New i.e., Baron New and Baron New go up and down completely randomly.

Pair Corralation between Baron New and Baron New

Assuming the 90 days horizon Baron New Asia is expected to under-perform the Baron New. In addition to that, Baron New is 1.0 times more volatile than Baron New Asia. It trades about -0.11 of its total potential returns per unit of risk. Baron New Asia is currently generating about -0.11 per unit of volatility. If you would invest  962.00  in Baron New Asia on September 2, 2024 and sell it today you would lose (39.00) from holding Baron New Asia or give up 4.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Baron New Asia  vs.  Baron New Asia

Baron New Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baron New Asia has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Baron New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Baron New Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baron New Asia has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Baron New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Baron New and Baron New

The main advantage of trading using opposite Baron New and Baron New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron New position performs unexpectedly, Baron New 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 New will offset losses from the drop in Baron New's long position.

The idea behind Baron New Asia and Baron New Asia 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.