Baron Discovery Fund Market Value
| BDFIX Fund | USD 27.07 0.06 0.22% |
| Symbol | Baron |
Baron Discovery 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Baron Discovery's mutual fund what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Baron Discovery.
| 03/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in Baron Discovery on March 26, 2024 and sell it all today you would earn a total of 0.00 from holding Baron Discovery Fund or generate 0.0% return on investment in Baron Discovery over 30 days. Baron Discovery is related to or competes with Baron Partners, Baron Opportunity, Baron Fifth, and Baron Asset. The investment seeks capital appreciation through investments primarily in securities of small-sized growth companies More
Baron Discovery Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Baron Discovery's mutual fund current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Baron Discovery Fund upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 6.13 | |||
| Value At Risk | (2.26) | |||
| Potential Upside | 1.9 |
Baron Discovery Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Baron Discovery's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Baron Discovery's standard deviation. In reality, there are many statistical measures that can use Baron Discovery historical prices to predict the future Baron Discovery's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.17) | |||
| Total Risk Alpha | (0.21) | |||
| Treynor Ratio | (0.02) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Baron Discovery's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Baron Discovery Backtested Returns
Baron Discovery secures Sharpe Ratio (or Efficiency) of -0.0214, which signifies that the fund had a -0.0214% return per unit of risk over the last 3 months. Baron Discovery Fund exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Baron Discovery's Standard Deviation of 1.34, risk adjusted performance of (0.01), and Mean Deviation of 1.06 to double-check the risk estimate we provide. The fund shows a Beta (market volatility) of 1.64, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Baron Discovery will likely underperform.
Auto-correlation | 0.72 |
Good predictability
Baron Discovery Fund has good predictability. Overlapping area represents the amount of predictability between Baron Discovery time series from 26th of March 2024 to 10th of April 2024 and 10th of April 2024 to 25th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Baron Discovery price movement. The serial correlation of 0.72 indicates that around 72.0% of current Baron Discovery price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.72 | |
| Spearman Rank Test | 0.69 | |
| Residual Average | 0.0 | |
| Price Variance | 0.38 |
Baron Discovery lagged returns against current returns
Autocorrelation, which is Baron Discovery mutual fund's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Baron Discovery's mutual fund expected returns. We can calculate the autocorrelation of Baron Discovery returns to help us make a trade decision. For example, suppose you find that Baron Discovery has exhibited high autocorrelation historically, and you observe that the mutual fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Baron Discovery regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Baron Discovery mutual fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Baron Discovery mutual fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Baron Discovery mutual fund over time.
Current vs Lagged Prices |
| Timeline |
Baron Discovery Lagged Returns
When evaluating Baron Discovery's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Baron Discovery mutual fund have on its future price. Baron Discovery autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Baron Discovery autocorrelation shows the relationship between Baron Discovery mutual fund current value and its past values and can show if there is a momentum factor associated with investing in Baron Discovery Fund.
Regressed Prices |
| Timeline |
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Baron Discovery in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Baron Discovery's short interest history, or implied volatility extrapolated from Baron Discovery options trading.
Pair Trading with Baron Discovery
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Baron Discovery position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Baron Mutual Fund
| 0.63 | BREFX | Baron Real Estate | PairCorr |
| 0.82 | BRIIX | Baron Real Estate | PairCorr |
| 0.73 | BARAX | Baron Asset Fund | PairCorr |
The ability to find closely correlated positions to Baron Discovery could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Baron Discovery when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Baron Discovery - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Baron Discovery Fund to buy it.
The correlation of Baron Discovery is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Baron Discovery moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Baron Discovery moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Baron Discovery can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Baron Discovery Correlation, Baron Discovery Volatility and Baron Discovery Alpha and Beta module to complement your research on Baron Discovery. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Baron Discovery technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.