Correlation Between BAIYU Holdings and Inflection Point
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and Inflection Point Acquisition, you can compare the effects of market volatilities on BAIYU Holdings and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and Inflection Point.
Diversification Opportunities for BAIYU Holdings and Inflection Point
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIYU and Inflection is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of BAIYU Holdings i.e., BAIYU Holdings and Inflection Point go up and down completely randomly.
Pair Corralation between BAIYU Holdings and Inflection Point
Considering the 90-day investment horizon BAIYU Holdings is expected to under-perform the Inflection Point. In addition to that, BAIYU Holdings is 15.0 times more volatile than Inflection Point Acquisition. It trades about -0.21 of its total potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.22 per unit of volatility. If you would invest 1,086 in Inflection Point Acquisition on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Inflection Point Acquisition or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
BAIYU Holdings vs. Inflection Point Acquisition
Performance |
| Timeline |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inflection Point Acq |
BAIYU Holdings and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and Inflection Point
The main advantage of trading using opposite BAIYU Holdings and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| BAIYU Holdings vs. Inflection Point Acquisition | BAIYU Holdings vs. Zhihu Inc ADR | BAIYU Holdings vs. Small Cap Premium | BAIYU Holdings vs. SEI Investments |
| Inflection Point vs. Aterian | Inflection Point vs. Church Dwight | Inflection Point vs. Mannatech Incorporated | Inflection Point vs. Saia Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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