Correlation Between Eic Value and Baird Smallmid
Can any of the company-specific risk be diversified away by investing in both Eic Value and Baird Smallmid 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 Eic Value and Baird Smallmid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Baird Smallmid Cap, you can compare the effects of market volatilities on Eic Value and Baird Smallmid 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 Eic Value with a short position of Baird Smallmid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Baird Smallmid.
Diversification Opportunities for Eic Value and Baird Smallmid
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eic and Baird is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund 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 Eic Value 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 Eic Value Fund are associated (or correlated) with Baird Smallmid. 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 Eic Value i.e., Eic Value and Baird Smallmid go up and down completely randomly.
Pair Corralation between Eic Value and Baird Smallmid
Assuming the 90 days horizon Eic Value Fund is expected to generate 0.72 times more return on investment than Baird Smallmid. However, Eic Value Fund is 1.39 times less risky than Baird Smallmid. It trades about -0.16 of its potential returns per unit of risk. Baird Smallmid Cap is currently generating about -0.14 per unit of risk. If you would invest 1,725 in Eic Value Fund on October 11, 2024 and sell it today you would lose (40.00) from holding Eic Value Fund or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Baird Smallmid Cap
Performance |
| Timeline |
| Eic Value Fund |
| Baird Smallmid Cap |
Eic Value and Baird Smallmid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Baird Smallmid
The main advantage of trading using opposite Eic Value and Baird Smallmid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, Baird Smallmid 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 Smallmid will offset losses from the drop in Baird Smallmid's long position.| Eic Value vs. Rbb Fund Trust | Eic Value vs. Us Global Investors | Eic Value vs. Asg Global Alternatives | Eic Value vs. Morgan Stanley Global |
| Baird Smallmid vs. Small Pany Growth | Baird Smallmid vs. Eic Value Fund | Baird Smallmid vs. Arrow Managed Futures | Baird Smallmid vs. Fmasx |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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