Correlation Between Baron Discovery and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Baron Discovery and Champlain Mid 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 Champlain Mid 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 Champlain Mid Cap, you can compare the effects of market volatilities on Baron Discovery and Champlain Mid 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 Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Discovery and Champlain Mid.
Diversification Opportunities for Baron Discovery and Champlain Mid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Baron and Champlain is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Baron Discovery Fund and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid Cap 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 Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Baron Discovery i.e., Baron Discovery and Champlain Mid go up and down completely randomly.
Pair Corralation between Baron Discovery and Champlain Mid
Assuming the 90 days horizon Baron Discovery Fund is expected to generate 1.5 times more return on investment than Champlain Mid. However, Baron Discovery is 1.5 times more volatile than Champlain Mid Cap. It trades about 0.07 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about 0.07 per unit of risk. If you would invest 2,548 in Baron Discovery Fund on September 1, 2024 and sell it today you would earn a total of 950.00 from holding Baron Discovery Fund or generate 37.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Baron Discovery Fund vs. Champlain Mid Cap
Performance |
| Timeline |
| Baron Discovery |
| Champlain Mid Cap |
Baron Discovery and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Discovery and Champlain Mid
The main advantage of trading using opposite Baron Discovery and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Discovery position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid'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 |
| Champlain Mid vs. Blackrock Bd Fd | Champlain Mid vs. Artisan Mid Cap | Champlain Mid vs. T Rowe Price | Champlain Mid vs. Baird Short Term Bond |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |