Correlation Between BAIYU Holdings and Bayview Acquisition
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings and Bayview Acquisition 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 BAIYU Holdings and Bayview Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and Bayview Acquisition Corp, you can compare the effects of market volatilities on BAIYU Holdings and Bayview Acquisition 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 BAIYU Holdings with a short position of Bayview Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and Bayview Acquisition.
Diversification Opportunities for BAIYU Holdings and Bayview Acquisition
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BAIYU and Bayview is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings and Bayview Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayview Acquisition Corp and BAIYU Holdings 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 BAIYU Holdings are associated (or correlated) with Bayview Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayview Acquisition Corp has no effect on the direction of BAIYU Holdings i.e., BAIYU Holdings and Bayview Acquisition go up and down completely randomly.
Pair Corralation between BAIYU Holdings and Bayview Acquisition
Considering the 90-day investment horizon BAIYU Holdings is expected to under-perform the Bayview Acquisition. In addition to that, BAIYU Holdings is 8.5 times more volatile than Bayview Acquisition Corp. It trades about -0.08 of its total potential returns per unit of risk. Bayview Acquisition Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,000.00 in Bayview Acquisition Corp on August 25, 2024 and sell it today you would earn a total of 80.00 from holding Bayview Acquisition Corp or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 48.28% |
| Values | Daily Returns |
BAIYU Holdings vs. Bayview Acquisition Corp
Performance |
| Timeline |
| BAIYU Holdings |
| Bayview Acquisition Corp |
BAIYU Holdings and Bayview Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and Bayview Acquisition
The main advantage of trading using opposite BAIYU Holdings and Bayview Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings position performs unexpectedly, Bayview Acquisition 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 Bayview Acquisition will offset losses from the drop in Bayview Acquisition's long position.| BAIYU Holdings vs. Radcom | BAIYU Holdings vs. Tradeweb Markets | BAIYU Holdings vs. Grocery Outlet Holding | BAIYU Holdings vs. ATRenew Inc DRC |
| Bayview Acquisition vs. Voyager Acquisition Corp | Bayview Acquisition vs. YHN Acquisition I | Bayview Acquisition vs. YHN Acquisition I | Bayview Acquisition vs. Vine Hill Capital |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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