Correlation Between Bayview Acquisition and SIA Engineering
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition and SIA Engineering 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 SIA Engineering 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 SIA Engineering, you can compare the effects of market volatilities on Bayview Acquisition and SIA Engineering 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 SIA Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and SIA Engineering.
Diversification Opportunities for Bayview Acquisition and SIA Engineering
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bayview and SIA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and SIA Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIA Engineering 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 SIA Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIA Engineering has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and SIA Engineering go up and down completely randomly.
Pair Corralation between Bayview Acquisition and SIA Engineering
Assuming the 90 days horizon Bayview Acquisition Corp is expected to under-perform the SIA Engineering. In addition to that, Bayview Acquisition is 1.34 times more volatile than SIA Engineering. It trades about -0.18 of its total potential returns per unit of risk. SIA Engineering is currently generating about 0.22 per unit of volatility. If you would invest 1,729 in SIA Engineering on September 3, 2024 and sell it today you would earn a total of 15.00 from holding SIA Engineering or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. SIA Engineering
Performance |
| Timeline |
| Bayview Acquisition Corp |
| SIA Engineering |
Bayview Acquisition and SIA Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and SIA Engineering
The main advantage of trading using opposite Bayview Acquisition and SIA Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition position performs unexpectedly, SIA Engineering 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 SIA Engineering will offset losses from the drop in SIA Engineering's long position.| Bayview Acquisition vs. Nasdaq Inc | Bayview Acquisition vs. Broadstone Net Lease | Bayview Acquisition vs. Kite Realty Group | Bayview Acquisition vs. Playtika Holding Corp |
| SIA Engineering vs. Aena SME SA | SIA Engineering vs. SPACE | SIA Engineering vs. Bayview Acquisition Corp | SIA Engineering vs. T Rowe Price |
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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