Correlation Between Baozun and GABY
Can any of the company-specific risk be diversified away by investing in both Baozun and GABY 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 Baozun and GABY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baozun Inc and GABY Inc, you can compare the effects of market volatilities on Baozun and GABY 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 Baozun with a short position of GABY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baozun and GABY.
Diversification Opportunities for Baozun and GABY
Pay attention - limited upside
The 3 months correlation between Baozun and GABY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baozun Inc and GABY Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GABY Inc and Baozun 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 Baozun Inc are associated (or correlated) with GABY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GABY Inc has no effect on the direction of Baozun i.e., Baozun and GABY go up and down completely randomly.
Pair Corralation between Baozun and GABY
If you would invest 0.14 in GABY Inc on September 5, 2024 and sell it today you would earn a total of 0.00 from holding GABY Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Baozun Inc vs. GABY Inc
Performance |
| Timeline |
| Baozun Inc |
| GABY Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baozun and GABY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baozun and GABY
The main advantage of trading using opposite Baozun and GABY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baozun position performs unexpectedly, GABY 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 GABY will offset losses from the drop in GABY's long position.| Baozun vs. PDD Holdings | Baozun vs. JD Inc Adr | Baozun vs. Global E Online | Baozun vs. Vipshop Holdings Limited |
| GABY vs. Yuexiu Transport Infrastructure | GABY vs. TFI International | GABY vs. Apogee Enterprises | GABY vs. Cumulus Media Class |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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