Correlation Between Baker Steel and Acadian Asset
Can any of the company-specific risk be diversified away by investing in both Baker Steel and Acadian Asset 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 Baker Steel and Acadian Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Steel Resources and Acadian Asset Management, you can compare the effects of market volatilities on Baker Steel and Acadian Asset 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 Baker Steel with a short position of Acadian Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Steel and Acadian Asset.
Diversification Opportunities for Baker Steel and Acadian Asset
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baker and Acadian is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Baker Steel Resources and Acadian Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadian Asset Management and Baker Steel 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 Baker Steel Resources are associated (or correlated) with Acadian Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadian Asset Management has no effect on the direction of Baker Steel i.e., Baker Steel and Acadian Asset go up and down completely randomly.
Pair Corralation between Baker Steel and Acadian Asset
Assuming the 90 days trading horizon Baker Steel Resources is expected to generate 0.76 times more return on investment than Acadian Asset. However, Baker Steel Resources is 1.32 times less risky than Acadian Asset. It trades about 0.08 of its potential returns per unit of risk. Acadian Asset Management is currently generating about 0.02 per unit of risk. If you would invest 6,700 in Baker Steel Resources on September 13, 2025 and sell it today you would earn a total of 500.00 from holding Baker Steel Resources or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Baker Steel Resources vs. Acadian Asset Management
Performance |
| Timeline |
| Baker Steel Resources |
| Acadian Asset Management |
Baker Steel and Acadian Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baker Steel and Acadian Asset
The main advantage of trading using opposite Baker Steel and Acadian Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Steel position performs unexpectedly, Acadian Asset 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 Acadian Asset will offset losses from the drop in Acadian Asset's long position.| Baker Steel vs. Samsung Electronics Co | Baker Steel vs. Samsung Electronics Co | Baker Steel vs. Samsung Electronics Co | Baker Steel vs. Toyota Motor Corp |
| Acadian Asset vs. Ashmore Group Plc | Acadian Asset vs. Oxford Lane Capital | Acadian Asset vs. Tetragon Financial Group | Acadian Asset vs. Horizon Technology Finance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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