Correlation Between Champlain Mid and Baron Discovery
Can any of the company-specific risk be diversified away by investing in both Champlain Mid and Baron Discovery 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 Champlain Mid and Baron Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Mid Cap and Baron Discovery Fund, you can compare the effects of market volatilities on Champlain Mid and Baron Discovery 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 Champlain Mid with a short position of Baron Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Mid and Baron Discovery.
Diversification Opportunities for Champlain Mid and Baron Discovery
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Baron is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Mid Cap and Baron Discovery Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Discovery and Champlain 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 Champlain Mid Cap are associated (or correlated) with Baron Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Discovery has no effect on the direction of Champlain Mid i.e., Champlain Mid and Baron Discovery go up and down completely randomly.
Pair Corralation between Champlain Mid and Baron Discovery
Assuming the 90 days horizon Champlain Mid is expected to generate 1.59 times less return on investment than Baron Discovery. But when comparing it to its historical volatility, Champlain Mid Cap is 1.55 times less risky than Baron Discovery. It trades about 0.37 of its potential returns per unit of risk. Baron Discovery Fund is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 3,084 in Baron Discovery Fund on August 28, 2024 and sell it today you would earn a total of 399.00 from holding Baron Discovery Fund or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Mid Cap vs. Baron Discovery Fund
Performance |
| Timeline |
| Champlain Mid Cap |
| Baron Discovery |
Champlain Mid and Baron Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Mid and Baron Discovery
The main advantage of trading using opposite Champlain Mid and Baron Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Mid position performs unexpectedly, Baron Discovery 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 Discovery will offset losses from the drop in Baron Discovery's long position.| 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 |
| Baron Discovery vs. Baron Partners Fund | Baron Discovery vs. Baron Global Advantage | Baron Discovery vs. Baron Opportunity Fund | Baron Discovery vs. Baron Fifth Avenue |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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