Correlation Between Entegris and Baird Medical

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

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

Diversification Opportunities for Entegris and Baird Medical

-0.08

Correlation Coefficient

Entegris  Baird Medical

Good diversification

The 3 months correlation between Entegris and Baird is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Entegris and Baird Medical Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Medical Investment and Entegris 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 Entegris are associated (or correlated) with Baird Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Medical Investment has no effect on the direction of Entegris i.e., Entegris and Baird Medical go up and down completely randomly.

Pair Corralation between Entegris and Baird Medical

Given the investment horizon of 90 days Entegris is expected to generate 132.26 times less return on investment than Baird Medical. But when comparing it to its historical volatility, Entegris is 33.41 times less risky than Baird Medical. It trades about 0.03 of its potential returns per unit of risk. Baird Medical Investment is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  233.00  in Baird Medical Investment on December 19, 2024 and sell it today you would earn a total of  307.00  from holding Baird Medical Investment or generate 131.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Entegris  vs.  Baird Medical Investment

Entegris

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Entegris are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Entegris is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Baird Medical Investment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baird Medical Investment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, Baird Medical exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Entegris and Baird Medical

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

The idea behind Entegris and Baird Medical Investment 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.