Correlation Between Baird Medical and TriSalus Life

Can any of the company-specific risk be diversified away by investing in both Baird Medical and TriSalus Life 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 Medical and TriSalus Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baird Medical Investment and TriSalus Life Sciences, you can compare the effects of market volatilities on Baird Medical and TriSalus Life 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 Medical with a short position of TriSalus Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Medical and TriSalus Life.

Diversification Opportunities for Baird Medical and TriSalus Life

0.29

Correlation Coefficient

Baird Medical  TriSalus Life

Modest diversification

The 3 months correlation between Baird and TriSalus is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Baird Medical Investment and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences and Baird Medical 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 Medical Investment are associated (or correlated) with TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of Baird Medical i.e., Baird Medical and TriSalus Life go up and down completely randomly.

Pair Corralation between Baird Medical and TriSalus Life

Assuming the 90 days horizon Baird Medical Investment is expected to generate 8.82 times more return on investment than TriSalus Life. However, Baird Medical is 8.82 times more volatile than TriSalus Life Sciences. It trades about 0.16 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about 0.03 per unit of risk. If you would invest  3.11  in Baird Medical Investment on October 24, 2024 and sell it today you would earn a total of  6.89  from holding Baird Medical Investment or generate 221.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	71.19%
Values	Daily Returns

Baird Medical Investment  vs.  TriSalus Life Sciences

Baird Medical Investment

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baird Medical Investment are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Baird Medical showed solid returns over the last few months and may actually be approaching a breakup point.

TriSalus Life Sciences

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, TriSalus Life showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Baird Medical and TriSalus Life

The main advantage of trading using opposite Baird Medical and TriSalus Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Medical position performs unexpectedly, TriSalus Life 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 TriSalus Life will offset losses from the drop in TriSalus Life's long position.

The idea behind Baird Medical Investment and TriSalus Life Sciences pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.