Correlation Between Pear Tree and Baird Intermediate
Can any of the company-specific risk be diversified away by investing in both Pear Tree and Baird Intermediate 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 Pear Tree and Baird Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Tree Polaris and Baird Intermediate Bond, you can compare the effects of market volatilities on Pear Tree and Baird Intermediate 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 Pear Tree with a short position of Baird Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Tree and Baird Intermediate.
Diversification Opportunities for Pear Tree and Baird Intermediate
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pear and Baird is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pear Tree Polaris and Baird Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Intermediate Bond and Pear Tree 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 Pear Tree Polaris are associated (or correlated) with Baird Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Intermediate Bond has no effect on the direction of Pear Tree i.e., Pear Tree and Baird Intermediate go up and down completely randomly.
Pair Corralation between Pear Tree and Baird Intermediate
Assuming the 90 days horizon Pear Tree Polaris is expected to generate 2.81 times more return on investment than Baird Intermediate. However, Pear Tree is 2.81 times more volatile than Baird Intermediate Bond. It trades about 0.06 of its potential returns per unit of risk. Baird Intermediate Bond is currently generating about 0.07 per unit of risk. If you would invest 1,928 in Pear Tree Polaris on September 12, 2024 and sell it today you would earn a total of 453.00 from holding Pear Tree Polaris or generate 23.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pear Tree Polaris vs. Baird Intermediate Bond
Performance |
| Timeline |
| Pear Tree Polaris |
| Baird Intermediate Bond |
Pear Tree and Baird Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Tree and Baird Intermediate
The main advantage of trading using opposite Pear Tree and Baird Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Tree position performs unexpectedly, Baird Intermediate 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 Intermediate will offset losses from the drop in Baird Intermediate's long position.| Pear Tree vs. Wasatch E Growth | Pear Tree vs. Tcw E Fixed | Pear Tree vs. Tcw Relative Value | Pear Tree vs. Amg Managers Loomis |
| Baird Intermediate vs. Lord Abbett Short | Baird Intermediate vs. Delaware Investments Ultrashort | Baird Intermediate vs. Easterly Snow Longshort | Baird Intermediate vs. Quantitative Longshort Equity |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |