Correlation Between Amg Timessquare and Baron Discovery
Can any of the company-specific risk be diversified away by investing in both Amg Timessquare 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 Timessquare 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 Timessquare International and Baron Discovery Fund, you can compare the effects of market volatilities on Amg Timessquare 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 Timessquare with a short position of Baron Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Timessquare and Baron Discovery.
Diversification Opportunities for Amg Timessquare and Baron Discovery
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amg and Baron is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Amg Timessquare International 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 Timessquare 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 Timessquare International 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 Timessquare i.e., Amg Timessquare and Baron Discovery go up and down completely randomly.
Pair Corralation between Amg Timessquare and Baron Discovery
Assuming the 90 days horizon Amg Timessquare International is expected to under-perform the Baron Discovery. But the mutual fund apears to be less risky and, when comparing its historical volatility, Amg Timessquare International is 2.29 times less risky than Baron Discovery. The mutual fund trades about -0.13 of its potential returns per unit of risk. The Baron Discovery Fund is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 3,084 in Baron Discovery Fund on August 29, 2024 and sell it today you would earn a total of 396.00 from holding Baron Discovery Fund or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Timessquare International vs. Baron Discovery Fund
Performance |
| Timeline |
| Amg Timessquare Inte |
| Baron Discovery |
Amg Timessquare and Baron Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Timessquare and Baron Discovery
The main advantage of trading using opposite Amg Timessquare and Baron Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Timessquare 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 Timessquare vs. Baron Emerging Markets | Amg Timessquare vs. Parnassus Mid Cap | Amg Timessquare vs. Fidelity International Growth | Amg Timessquare vs. Df Dent Midcap |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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