Correlation Between BAIYU Holdings and Skeena Resources
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings and Skeena Resources 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 Skeena Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and Skeena Resources, you can compare the effects of market volatilities on BAIYU Holdings and Skeena Resources 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 Skeena Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and Skeena Resources.
Diversification Opportunities for BAIYU Holdings and Skeena Resources
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BAIYU and Skeena is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings and Skeena Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skeena Resources 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 Skeena Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skeena Resources has no effect on the direction of BAIYU Holdings i.e., BAIYU Holdings and Skeena Resources go up and down completely randomly.
Pair Corralation between BAIYU Holdings and Skeena Resources
Considering the 90-day investment horizon BAIYU Holdings is expected to under-perform the Skeena Resources. But the stock apears to be less risky and, when comparing its historical volatility, BAIYU Holdings is 1.02 times less risky than Skeena Resources. The stock trades about -0.25 of its potential returns per unit of risk. The Skeena Resources is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 984.00 in Skeena Resources on August 28, 2024 and sell it today you would lose (73.00) from holding Skeena Resources or give up 7.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
BAIYU Holdings vs. Skeena Resources
Performance |
| Timeline |
| BAIYU Holdings |
| Skeena Resources |
BAIYU Holdings and Skeena Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and Skeena Resources
The main advantage of trading using opposite BAIYU Holdings and Skeena Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings position performs unexpectedly, Skeena Resources 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 Skeena Resources will offset losses from the drop in Skeena Resources' long position.| BAIYU Holdings vs. Playtika Holding Corp | BAIYU Holdings vs. GameStop Corp | BAIYU Holdings vs. Mind Technology | BAIYU Holdings vs. Semtech |
| Skeena Resources vs. Materion | Skeena Resources vs. Compass Minerals International | Skeena Resources vs. IperionX Limited American | Skeena Resources vs. EMX Royalty 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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