Correlation Between Artisan Mid and Baron Small
Can any of the company-specific risk be diversified away by investing in both Artisan Mid and Baron Small 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 Artisan Mid and Baron Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Mid Cap and Baron Small Cap, you can compare the effects of market volatilities on Artisan Mid and Baron Small 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 Artisan Mid with a short position of Baron Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Mid and Baron Small.
Diversification Opportunities for Artisan Mid and Baron Small
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Baron is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Mid Cap and Baron Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Small Cap and Artisan Mid 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 Artisan Mid Cap are associated (or correlated) with Baron Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Small Cap has no effect on the direction of Artisan Mid i.e., Artisan Mid and Baron Small go up and down completely randomly.
Pair Corralation between Artisan Mid and Baron Small
Assuming the 90 days horizon Artisan Mid is expected to generate 1.03 times less return on investment than Baron Small. In addition to that, Artisan Mid is 1.16 times more volatile than Baron Small Cap. It trades about 0.27 of its total potential returns per unit of risk. Baron Small Cap is currently generating about 0.32 per unit of volatility. If you would invest 3,013 in Baron Small Cap on November 3, 2024 and sell it today you would earn a total of 209.00 from holding Baron Small Cap or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Mid Cap vs. Baron Small Cap
Performance |
| Timeline |
| Artisan Mid Cap |
| Baron Small Cap |
Artisan Mid and Baron Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Mid and Baron Small
The main advantage of trading using opposite Artisan Mid and Baron Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Mid position performs unexpectedly, Baron Small 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 Small will offset losses from the drop in Baron Small's long position.| Artisan Mid vs. Artisan International Fund | Artisan Mid vs. Artisan Mid Cap | Artisan Mid vs. Total Return Fund | Artisan Mid vs. Growth Fund Of |
| Baron Small vs. Baron Growth Fund | Baron Small vs. Baron Asset Fund | Baron Small vs. Baron Partners Fund | Baron Small vs. Nasdaq 100 Fund Investor |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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