Correlation Between Bayport International and Safe

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Bayport International Holdings  vs.  Safe and Green

 Performance 
       Timeline  
Bayport International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bayport International Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Safe and Green 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Safe and Green has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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.
The idea behind Bayport International Holdings and Safe and Green 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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