Correlation Between Bayport International and Safe
Can any of the company-specific risk be diversified away by investing in both Bayport International and Safe 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 Bayport International and Safe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayport International Holdings and Safe and Green, you can compare the effects of market volatilities on Bayport International and Safe 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 Bayport International with a short position of Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayport International and Safe.
Diversification Opportunities for Bayport International and Safe
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bayport and Safe is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bayport International Holdings and Safe and Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe and Green and Bayport International 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 Bayport International Holdings are associated (or correlated) with Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe and Green has no effect on the direction of Bayport International i.e., Bayport International and Safe go up and down completely randomly.
Pair Corralation between Bayport International and Safe
Given the investment horizon of 90 days Bayport International Holdings is expected to under-perform the Safe. In addition to that, Bayport International is 1.36 times more volatile than Safe and Green. It trades about -0.21 of its total potential returns per unit of risk. Safe and Green is currently generating about -0.04 per unit of volatility. If you would invest 297.00 in Safe and Green on September 1, 2024 and sell it today you would lose (56.00) from holding Safe and Green or give up 18.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Bayport International Holdings vs. Safe and Green
Performance |
Timeline |
Bayport International |
Safe and Green |
Bayport International and Safe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bayport International and Safe
The main advantage of trading using opposite Bayport International and Safe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayport International position performs unexpectedly, Safe 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 Safe will offset losses from the drop in Safe's long position.Bayport International vs. Hong Kong Land | Bayport International vs. Wharf Holdings | Bayport International vs. Holiday Island Holdings | Bayport International vs. Sun Hung Kai |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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