Correlation Between Baron Emerging and Champlain Small
Can any of the company-specific risk be diversified away by investing in both Baron Emerging and Champlain 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 Baron Emerging and Champlain Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Emerging Markets and Champlain Small, you can compare the effects of market volatilities on Baron Emerging and Champlain 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 Baron Emerging with a short position of Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Emerging and Champlain Small.
Diversification Opportunities for Baron Emerging and Champlain Small
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BARON and Champlain is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Baron Emerging Markets and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small and Baron Emerging 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 Emerging Markets are associated (or correlated) with Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of Baron Emerging i.e., Baron Emerging and Champlain Small go up and down completely randomly.
Pair Corralation between Baron Emerging and Champlain Small
Assuming the 90 days horizon Baron Emerging Markets is expected to under-perform the Champlain Small. But the mutual fund apears to be less risky and, when comparing its historical volatility, Baron Emerging Markets is 1.7 times less risky than Champlain Small. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Champlain Small is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,312 in Champlain Small on August 29, 2024 and sell it today you would earn a total of 245.00 from holding Champlain Small or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baron Emerging Markets vs. Champlain Small
Performance |
| Timeline |
| Baron Emerging Markets |
| Champlain Small |
Baron Emerging and Champlain Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baron Emerging and Champlain Small
The main advantage of trading using opposite Baron Emerging and Champlain Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Emerging position performs unexpectedly, Champlain 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 Champlain Small will offset losses from the drop in Champlain Small's long position.| Baron Emerging vs. Eaton Vance Income | Baron Emerging vs. Baird Aggregate Bond | Baron Emerging vs. Champlain Small | Baron Emerging vs. Mfs Emerging Markets |
| Champlain Small vs. Putnam Equity Income | Champlain Small vs. Putnam Growth Opportunities | Champlain Small vs. HUMANA INC | Champlain Small vs. Aquagold International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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