Correlation Between Baron Discovery and Polen Growth
Can any of the company-specific risk be diversified away by investing in both Baron Discovery and Polen Growth 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 Discovery and Polen Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Discovery Fund and Polen Growth Fund, you can compare the effects of market volatilities on Baron Discovery and Polen Growth 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 Discovery with a short position of Polen Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Discovery and Polen Growth.
Diversification Opportunities for Baron Discovery and Polen Growth
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Baron and Polen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Baron Discovery Fund and Polen Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Growth and Baron Discovery 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 Discovery Fund are associated (or correlated) with Polen Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Growth has no effect on the direction of Baron Discovery i.e., Baron Discovery and Polen Growth go up and down completely randomly.
Pair Corralation between Baron Discovery and Polen Growth
Assuming the 90 days horizon Baron Discovery Fund is expected to generate 1.45 times more return on investment than Polen Growth. However, Baron Discovery is 1.45 times more volatile than Polen Growth Fund. It trades about 0.37 of its potential returns per unit of risk. Polen Growth Fund is currently generating about 0.24 per unit of risk. If you would invest 2,970 in Baron Discovery Fund on August 26, 2024 and sell it today you would earn a total of 364.00 from holding Baron Discovery Fund or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Discovery Fund vs. Polen Growth Fund
Performance |
| Timeline |
| Baron Discovery |
| Polen Growth |
Baron Discovery and Polen Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Discovery and Polen Growth
The main advantage of trading using opposite Baron Discovery and Polen Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Discovery position performs unexpectedly, Polen Growth 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 Polen Growth will offset losses from the drop in Polen Growth's long position.| Baron Discovery vs. Baron Partners Fund | Baron Discovery vs. Baron Global Advantage | Baron Discovery vs. Baron Opportunity Fund | Baron Discovery vs. Baron Fifth Avenue |
| Polen Growth vs. Congress Mid Cap | Polen Growth vs. Wcm Focused International | Polen Growth vs. Polen International Growth | Polen Growth vs. Polen Global Growth |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Directory Find actively traded commodities issued by global exchanges |