Correlation Between Baron Health and Virtus Kar
Can any of the company-specific risk be diversified away by investing in both Baron Health and Virtus Kar 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 Health and Virtus Kar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Virtus Kar Small Cap, you can compare the effects of market volatilities on Baron Health and Virtus Kar 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 Health with a short position of Virtus Kar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Virtus Kar.
Diversification Opportunities for Baron Health and Virtus Kar
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baron and Virtus is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Virtus Kar Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Kar Small and Baron Health 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 Health Care are associated (or correlated) with Virtus Kar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Kar Small has no effect on the direction of Baron Health i.e., Baron Health and Virtus Kar go up and down completely randomly.
Pair Corralation between Baron Health and Virtus Kar
Assuming the 90 days horizon Baron Health Care is expected to generate 0.8 times more return on investment than Virtus Kar. However, Baron Health Care is 1.25 times less risky than Virtus Kar. It trades about 0.03 of its potential returns per unit of risk. Virtus Kar Small Cap is currently generating about -0.09 per unit of risk. If you would invest 1,992 in Baron Health Care on September 9, 2025 and sell it today you would earn a total of 155.00 from holding Baron Health Care or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Baron Health Care vs. Virtus Kar Small Cap
Performance |
| Timeline |
| Baron Health Care |
| Virtus Kar Small |
Baron Health and Virtus Kar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Virtus Kar
The main advantage of trading using opposite Baron Health and Virtus Kar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Virtus Kar 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 Virtus Kar will offset losses from the drop in Virtus Kar's long position.| Baron Health vs. Performance Trust Municipal | Baron Health vs. Equalize Community Development | Baron Health vs. American High Income Municipal | Baron Health vs. Intermediate Term Tax Free Bond |
| Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Small Cap | Virtus Kar vs. Virtus Kar Small Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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