Correlation Between Baron Real and Pro-blend(r) Extended
Can any of the company-specific risk be diversified away by investing in both Baron Real and Pro-blend(r) Extended 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 Real and Pro-blend(r) Extended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Real Estate and Pro Blend Extended Term, you can compare the effects of market volatilities on Baron Real and Pro-blend(r) Extended 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 Real with a short position of Pro-blend(r) Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Real and Pro-blend(r) Extended.
Diversification Opportunities for Baron Real and Pro-blend(r) Extended
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baron and Pro-blend(r) is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Baron Real Estate and Pro Blend Extended Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Extended and Baron Real 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 Real Estate are associated (or correlated) with Pro-blend(r) Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Extended has no effect on the direction of Baron Real i.e., Baron Real and Pro-blend(r) Extended go up and down completely randomly.
Pair Corralation between Baron Real and Pro-blend(r) Extended
Assuming the 90 days horizon Baron Real Estate is expected to generate 2.45 times more return on investment than Pro-blend(r) Extended. However, Baron Real is 2.45 times more volatile than Pro Blend Extended Term. It trades about 0.19 of its potential returns per unit of risk. Pro Blend Extended Term is currently generating about 0.11 per unit of risk. If you would invest 3,845 in Baron Real Estate on June 10, 2025 and sell it today you would earn a total of 501.00 from holding Baron Real Estate or generate 13.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Real Estate vs. Pro Blend Extended Term
Performance |
| Timeline |
| Baron Real Estate |
| Pro-blend(r) Extended |
Baron Real and Pro-blend(r) Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Real and Pro-blend(r) Extended
The main advantage of trading using opposite Baron Real and Pro-blend(r) Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Real position performs unexpectedly, Pro-blend(r) Extended 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 Pro-blend(r) Extended will offset losses from the drop in Pro-blend(r) Extended's long position.| Baron Real vs. Realty Income | Baron Real vs. Dynex Capital | Baron Real vs. First Industrial Realty | Baron Real vs. Healthcare Realty Trust |
| Pro-blend(r) Extended vs. Manning Napier Credit | Pro-blend(r) Extended vs. Manning Napier Core | Pro-blend(r) Extended vs. Manning Napier Core | Pro-blend(r) Extended vs. Manning Napier Credit |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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