Correlation Between Baron Discovery and Vanguard International
Can any of the company-specific risk be diversified away by investing in both Baron Discovery and Vanguard International 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 Vanguard International 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 Vanguard International Growth, you can compare the effects of market volatilities on Baron Discovery and Vanguard International 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 Vanguard International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Discovery and Vanguard International.
Diversification Opportunities for Baron Discovery and Vanguard International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baron and Vanguard is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Baron Discovery Fund and Vanguard International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard International 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 Vanguard International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard International has no effect on the direction of Baron Discovery i.e., Baron Discovery and Vanguard International go up and down completely randomly.
Pair Corralation between Baron Discovery and Vanguard International
Assuming the 90 days horizon Baron Discovery Fund is expected to generate 1.29 times more return on investment than Vanguard International. However, Baron Discovery is 1.29 times more volatile than Vanguard International Growth. It trades about 0.23 of its potential returns per unit of risk. Vanguard International Growth is currently generating about 0.1 per unit of risk. If you would invest 2,828 in Baron Discovery Fund on September 12, 2024 and sell it today you would earn a total of 477.00 from holding Baron Discovery Fund or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Discovery Fund vs. Vanguard International Growth
Performance |
| Timeline |
| Baron Discovery |
| Vanguard International |
Baron Discovery and Vanguard International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Discovery and Vanguard International
The main advantage of trading using opposite Baron Discovery and Vanguard International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Discovery position performs unexpectedly, Vanguard International 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 Vanguard International will offset losses from the drop in Vanguard International's long position.| Baron Discovery vs. Baron Global Advantage | Baron Discovery vs. Baron Opportunity Fund | Baron Discovery vs. Baron Fifth Avenue | Baron Discovery vs. Baron Focused 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |