Correlation Between Artisan Global and Baron Global

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

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

Diversification Opportunities for Artisan Global and Baron Global

-0.56

Correlation Coefficient

Artisan Global  Baron Global

Excellent diversification

The 3 months correlation between Artisan and Baron is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Opportunities and Baron Global Advantage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Global Advantage and Artisan Global 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 Global Opportunities are associated (or correlated) with Baron Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Global Advantage has no effect on the direction of Artisan Global i.e., Artisan Global and Baron Global go up and down completely randomly.

Pair Corralation between Artisan Global and Baron Global

Assuming the 90 days horizon Artisan Global Opportunities is expected to under-perform the Baron Global. In addition to that, Artisan Global is 1.23 times more volatile than Baron Global Advantage. It trades about -0.07 of its total potential returns per unit of risk. Baron Global Advantage is currently generating about 0.15 per unit of volatility. If you would invest  3,535  in Baron Global Advantage on October 24, 2024 and sell it today you would earn a total of  447.00  from holding Baron Global Advantage or generate 12.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Artisan Global Opportunities  vs.  Baron Global Advantage

Artisan Global Oppor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artisan Global Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Baron Global Advantage

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baron Global Advantage are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Baron Global showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Artisan Global and Baron Global

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

The idea behind Artisan Global Opportunities and Baron Global Advantage 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.