Correlation Between Artisan Mid and Baron Growth

Can any of the company-specific risk be diversified away by investing in both Artisan Mid and Baron Growth 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 Artisan Mid and Baron Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artisan Mid Cap and Baron Growth Fund, you can compare the effects of market volatilities on Artisan Mid and Baron Growth 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 Artisan Mid with a short position of Baron Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Mid and Baron Growth.

Diversification Opportunities for Artisan Mid and Baron Growth

0.83

Correlation Coefficient

Artisan Mid  Baron Growth

Very poor diversification

The 3 months correlation between Artisan and Baron is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Mid Cap and Baron Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Growth and Artisan 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 Artisan Mid Cap are associated (or correlated) with Baron Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Growth has no effect on the direction of Artisan Mid i.e., Artisan Mid and Baron Growth go up and down completely randomly.

Pair Corralation between Artisan Mid and Baron Growth

Assuming the 90 days horizon Artisan Mid Cap is expected to under-perform the Baron Growth. In addition to that, Artisan Mid is 4.84 times more volatile than Baron Growth Fund. It trades about -0.14 of its total potential returns per unit of risk. Baron Growth Fund is currently generating about 0.02 per unit of volatility. If you would invest  10,461  in Baron Growth Fund on September 12, 2024 and sell it today you would earn a total of  21.00  from holding Baron Growth Fund or generate 0.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Artisan Mid Cap  vs.  Baron Growth Fund

Artisan Mid Cap

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Artisan Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Artisan Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Baron Growth

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baron Growth Fund are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Baron Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artisan Mid and Baron Growth

The main advantage of trading using opposite Artisan Mid and Baron Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Mid position performs unexpectedly, Baron Growth 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 Growth will offset losses from the drop in Baron Growth's long position.

The idea behind Artisan Mid Cap and Baron Growth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..