Correlation Between Bayview Acquisition and Global X
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition and Global X 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 Bayview Acquisition and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayview Acquisition Corp and Global X, you can compare the effects of market volatilities on Bayview Acquisition and Global X 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 Bayview Acquisition with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and Global X.
Diversification Opportunities for Bayview Acquisition and Global X
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bayview and Global is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and Global X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X and Bayview Acquisition 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 Bayview Acquisition Corp are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and Global X go up and down completely randomly.
Pair Corralation between Bayview Acquisition and Global X
If you would invest 1,000.00 in Bayview Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Bayview Acquisition Corp or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. Global X
Performance |
| Timeline |
| Bayview Acquisition Corp |
| Global X |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bayview Acquisition and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and Global X
The main advantage of trading using opposite Bayview Acquisition and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Bayview Acquisition vs. Anheuser Busch Inbev | Bayview Acquisition vs. Sapiens International | Bayview Acquisition vs. Compania Cervecerias Unidas | Bayview Acquisition vs. ServiceNow |
| Global X vs. Horizon Kinetics Inflation | Global X vs. Invesco Global Clean | Global X vs. Invesco Global Listed | Global X vs. Virtus Real Asset |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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