Correlation Between Baylin Technologies and Maritime Launch
Can any of the company-specific risk be diversified away by investing in both Baylin Technologies and Maritime Launch 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 Baylin Technologies and Maritime Launch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baylin Technologies and Maritime Launch Services, you can compare the effects of market volatilities on Baylin Technologies and Maritime Launch 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 Baylin Technologies with a short position of Maritime Launch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baylin Technologies and Maritime Launch.
Diversification Opportunities for Baylin Technologies and Maritime Launch
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baylin and Maritime is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Baylin Technologies and Maritime Launch Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maritime Launch Services and Baylin Technologies 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 Baylin Technologies are associated (or correlated) with Maritime Launch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maritime Launch Services has no effect on the direction of Baylin Technologies i.e., Baylin Technologies and Maritime Launch go up and down completely randomly.
Pair Corralation between Baylin Technologies and Maritime Launch
Assuming the 90 days trading horizon Baylin Technologies is expected to under-perform the Maritime Launch. But the stock apears to be less risky and, when comparing its historical volatility, Baylin Technologies is 1.78 times less risky than Maritime Launch. The stock trades about -0.14 of its potential returns per unit of risk. The Maritime Launch Services is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Maritime Launch Services on September 2, 2024 and sell it today you would earn a total of 1.50 from holding Maritime Launch Services or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baylin Technologies vs. Maritime Launch Services
Performance |
| Timeline |
| Baylin Technologies |
| Maritime Launch Services |
Baylin Technologies and Maritime Launch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baylin Technologies and Maritime Launch
The main advantage of trading using opposite Baylin Technologies and Maritime Launch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baylin Technologies position performs unexpectedly, Maritime Launch 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 Maritime Launch will offset losses from the drop in Maritime Launch's long position.| Baylin Technologies vs. Current Water Technologies | Baylin Technologies vs. Sparta Capital | Baylin Technologies vs. Fintech Select | Baylin Technologies vs. iShares Canadian HYBrid |
| Maritime Launch vs. Firan Technology Group | Maritime Launch vs. AnalytixInsight | Maritime Launch vs. Baylin Technologies | Maritime Launch vs. Bewhere Holdings |
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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