Correlation Between Champlain Small and Baird Small/mid
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Baird Small/mid 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 Champlain Small and Baird Small/mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Baird Smallmid Cap, you can compare the effects of market volatilities on Champlain Small and Baird Small/mid 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 Champlain Small with a short position of Baird Small/mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Baird Small/mid.
Diversification Opportunities for Champlain Small and Baird Small/mid
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Champlain and Baird is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Baird Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Smallmid Cap and Champlain Small 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 Champlain Small are associated (or correlated) with Baird Small/mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Smallmid Cap has no effect on the direction of Champlain Small i.e., Champlain Small and Baird Small/mid go up and down completely randomly.
Pair Corralation between Champlain Small and Baird Small/mid
Assuming the 90 days horizon Champlain Small is expected to generate 1.26 times more return on investment than Baird Small/mid. However, Champlain Small is 1.26 times more volatile than Baird Smallmid Cap. It trades about 0.34 of its potential returns per unit of risk. Baird Smallmid Cap is currently generating about 0.33 per unit of risk. If you would invest 2,312 in Champlain Small on August 28, 2024 and sell it today you would earn a total of 270.00 from holding Champlain Small or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Baird Smallmid Cap
Performance |
| Timeline |
| Champlain Small |
| Baird Smallmid Cap |
Champlain Small and Baird Small/mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Baird Small/mid
The main advantage of trading using opposite Champlain Small and Baird Small/mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Baird Small/mid 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 Baird Small/mid will offset losses from the drop in Baird Small/mid's long position.| Champlain Small vs. Washington Mutual Investors | Champlain Small vs. Baron Emerging Markets | Champlain Small vs. Aquagold International | Champlain Small vs. Morningstar Unconstrained Allocation |
| Baird Small/mid vs. Baird Aggregate Bond | Baird Small/mid vs. Baird Aggregate Bond | Baird Small/mid vs. Baird Short Term Bond | Baird Small/mid vs. Baird Short Term Bond |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |