Correlation Between Baird Strategic and Kellner Merger
Can any of the company-specific risk be diversified away by investing in both Baird Strategic and Kellner Merger 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 Baird Strategic and Kellner Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Strategic Municipal and Kellner Merger Fund, you can compare the effects of market volatilities on Baird Strategic and Kellner Merger 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 Baird Strategic with a short position of Kellner Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Strategic and Kellner Merger.
Diversification Opportunities for Baird Strategic and Kellner Merger
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baird and Kellner is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baird Strategic Municipal and Kellner Merger Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellner Merger and Baird Strategic 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 Baird Strategic Municipal are associated (or correlated) with Kellner Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellner Merger has no effect on the direction of Baird Strategic i.e., Baird Strategic and Kellner Merger go up and down completely randomly.
Pair Corralation between Baird Strategic and Kellner Merger
Assuming the 90 days horizon Baird Strategic Municipal is expected to generate 0.52 times more return on investment than Kellner Merger. However, Baird Strategic Municipal is 1.94 times less risky than Kellner Merger. It trades about 0.13 of its potential returns per unit of risk. Kellner Merger Fund is currently generating about 0.02 per unit of risk. If you would invest 939.00 in Baird Strategic Municipal on September 14, 2024 and sell it today you would earn a total of 95.00 from holding Baird Strategic Municipal or generate 10.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Strategic Municipal vs. Kellner Merger Fund
Performance |
| Timeline |
| Baird Strategic Municipal |
| Kellner Merger |
Baird Strategic and Kellner Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Strategic and Kellner Merger
The main advantage of trading using opposite Baird Strategic and Kellner Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Strategic position performs unexpectedly, Kellner Merger 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 Kellner Merger will offset losses from the drop in Kellner Merger's long position.| Baird Strategic vs. Qs Growth Fund | Baird Strategic vs. Semiconductor Ultrasector Profund | Baird Strategic vs. Balanced Fund Investor | Baird Strategic vs. Rbc Funds Trust |
| Kellner Merger vs. Old Westbury Municipal | Kellner Merger vs. Morningstar Municipal Bond | Kellner Merger vs. Nuveen Minnesota Municipal | Kellner Merger vs. Baird Strategic Municipal |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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