Correlation Between Exodus Movement, and Baron Select

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

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

Diversification Opportunities for Exodus Movement, and Baron Select

0.54

Correlation Coefficient

Exodus Movement,  Baron Select

Very weak diversification

The 3 months correlation between Exodus and Baron is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Exodus Movement, and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds and Exodus Movement, 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 Exodus Movement, are associated (or correlated) with Baron Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of Exodus Movement, i.e., Exodus Movement, and Baron Select go up and down completely randomly.

Pair Corralation between Exodus Movement, and Baron Select

Given the investment horizon of 90 days Exodus Movement, is expected to generate 6.72 times more return on investment than Baron Select. However, Exodus Movement, is 6.72 times more volatile than Baron Select Funds. It trades about 0.03 of its potential returns per unit of risk. Baron Select Funds is currently generating about -0.11 per unit of risk. If you would invest  4,100  in Exodus Movement, on December 20, 2024 and sell it today you would lose (1,074) from holding Exodus Movement, or give up 26.2% of portfolio value over 90 days.

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

Exodus Movement,  vs.  Baron Select Funds

Exodus Movement,

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Exodus Movement, are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Exodus Movement, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Baron Select Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baron Select Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Exodus Movement, and Baron Select

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

The idea behind Exodus Movement, and Baron Select Funds 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.