Correlation Between Belden and IQIYI
Can any of the company-specific risk be diversified away by investing in both Belden and IQIYI 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 Belden and IQIYI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belden Inc and iQIYI Inc, you can compare the effects of market volatilities on Belden and IQIYI 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 Belden with a short position of IQIYI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belden and IQIYI.
Diversification Opportunities for Belden and IQIYI
Weak diversification
The 3 months correlation between Belden and IQIYI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc and iQIYI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iQIYI Inc and Belden 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 Belden Inc are associated (or correlated) with IQIYI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iQIYI Inc has no effect on the direction of Belden i.e., Belden and IQIYI go up and down completely randomly.
Pair Corralation between Belden and IQIYI
Considering the 90-day investment horizon Belden Inc is expected to generate 0.67 times more return on investment than IQIYI. However, Belden Inc is 1.5 times less risky than IQIYI. It trades about 0.04 of its potential returns per unit of risk. iQIYI Inc is currently generating about -0.04 per unit of risk. If you would invest 9,307 in Belden Inc on August 31, 2024 and sell it today you would earn a total of 2,933 from holding Belden Inc or generate 31.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belden Inc vs. iQIYI Inc
Performance |
| Timeline |
| Belden Inc |
| iQIYI Inc |
Belden and IQIYI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belden and IQIYI
The main advantage of trading using opposite Belden and IQIYI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belden position performs unexpectedly, IQIYI 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 IQIYI will offset losses from the drop in IQIYI's long position.| Belden vs. Clearfield | Belden vs. Comtech Telecommunications Corp | Belden vs. Knowles Cor | Belden vs. Extreme Networks |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |