Correlation Between Baron Health and Catalyst/map Global
Can any of the company-specific risk be diversified away by investing in both Baron Health and Catalyst/map Global 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 Catalyst/map Global 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 Catalystmap Global Balanced, you can compare the effects of market volatilities on Baron Health and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Catalyst/map Global.
Diversification Opportunities for Baron Health and Catalyst/map Global
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baron and Catalyst/map is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care and Catalystmap Global Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/map Global 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 Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/map Global has no effect on the direction of Baron Health i.e., Baron Health and Catalyst/map Global go up and down completely randomly.
Pair Corralation between Baron Health and Catalyst/map Global
Assuming the 90 days horizon Baron Health Care is expected to generate 2.57 times more return on investment than Catalyst/map Global. However, Baron Health is 2.57 times more volatile than Catalystmap Global Balanced. It trades about 0.09 of its potential returns per unit of risk. Catalystmap Global Balanced is currently generating about 0.15 per unit of risk. If you would invest 1,774 in Baron Health Care on June 7, 2025 and sell it today you would earn a total of 76.00 from holding Baron Health Care or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Health Care vs. Catalystmap Global Balanced
Performance |
| Timeline |
| Baron Health Care |
| Catalyst/map Global |
Baron Health and Catalyst/map Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Health and Catalyst/map Global
The main advantage of trading using opposite Baron Health and Catalyst/map Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health position performs unexpectedly, Catalyst/map Global 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 Catalyst/map Global will offset losses from the drop in Catalyst/map Global's long position.| Baron Health vs. Blackrock Health Sciences | Baron Health vs. Fidelity Advisor Health | Baron Health vs. Highland Longshort Healthcare | Baron Health vs. Alphacentric Lifesci Healthcare |
| Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalystsmh High Income | Catalyst/map Global vs. Catalyst Mlp Infrastructure |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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