Correlation Between Amg Managers and Baron Discovery
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Baron Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Cadence and Baron Discovery Fund, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Baron Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Baron Discovery.
Diversification Opportunities for Amg Managers and Baron Discovery
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amg and BARON is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Cadence and Baron Discovery Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Discovery and Amg Managers 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 Amg Managers Cadence 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 Amg Managers i.e., Amg Managers and Baron Discovery go up and down completely randomly.
Pair Corralation between Amg Managers and Baron Discovery
Assuming the 90 days horizon Amg Managers Cadence is expected to under-perform the Baron Discovery. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Managers Cadence is 1.47 times less risky than Baron Discovery. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Baron Discovery Fund is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,884 in Baron Discovery Fund on September 3, 2024 and sell it today you would earn a total of 614.00 from holding Baron Discovery Fund or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Cadence vs. Baron Discovery Fund
Performance |
| Timeline |
| Amg Managers Cadence |
| Baron Discovery |
Amg Managers and Baron Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Baron Discovery
The main advantage of trading using opposite Amg Managers and Baron Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. Oppenheimer Intl Small | Amg Managers vs. HUMANA INC | Amg Managers vs. Aquagold International |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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