Correlation Between Black Hills and BAIDU
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By analyzing existing cross correlation between Black Hills and BAIDU INC 4875, you can compare the effects of market volatilities on Black Hills and BAIDU 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 Black Hills with a short position of BAIDU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Hills and BAIDU.
Diversification Opportunities for Black Hills and BAIDU
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Black and BAIDU is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Black Hills and BAIDU INC 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIDU INC 4875 and Black Hills 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 Black Hills are associated (or correlated) with BAIDU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIDU INC 4875 has no effect on the direction of Black Hills i.e., Black Hills and BAIDU go up and down completely randomly.
Pair Corralation between Black Hills and BAIDU
Considering the 90-day investment horizon Black Hills is expected to generate 5.13 times more return on investment than BAIDU. However, Black Hills is 5.13 times more volatile than BAIDU INC 4875. It trades about 0.24 of its potential returns per unit of risk. BAIDU INC 4875 is currently generating about -0.22 per unit of risk. If you would invest 5,933 in Black Hills on August 30, 2024 and sell it today you would earn a total of 461.00 from holding Black Hills or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 26.09% |
| Values | Daily Returns |
Black Hills vs. BAIDU INC 4875
Performance |
| Timeline |
| Black Hills |
| BAIDU INC 4875 |
Black Hills and BAIDU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Hills and BAIDU
The main advantage of trading using opposite Black Hills and BAIDU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Hills position performs unexpectedly, BAIDU 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 BAIDU will offset losses from the drop in BAIDU's long position.| Black Hills vs. NorthWestern | Black Hills vs. Avista | Black Hills vs. Otter Tail | Black Hills vs. Companhia Paranaense de |
| BAIDU vs. Kinetik Holdings | BAIDU vs. Tianjin Capital Environmental | BAIDU vs. Black Hills | BAIDU vs. PGE Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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