Correlation Between Enfusion and Baijiayun
Can any of the company-specific risk be diversified away by investing in both Enfusion and Baijiayun 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 Enfusion and Baijiayun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Baijiayun Group, you can compare the effects of market volatilities on Enfusion and Baijiayun 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 Enfusion with a short position of Baijiayun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Baijiayun.
Diversification Opportunities for Enfusion and Baijiayun
Poor diversification
The 3 months correlation between Enfusion and Baijiayun is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Baijiayun Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baijiayun Group and Enfusion 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 Enfusion are associated (or correlated) with Baijiayun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baijiayun Group has no effect on the direction of Enfusion i.e., Enfusion and Baijiayun go up and down completely randomly.
Pair Corralation between Enfusion and Baijiayun
Given the investment horizon of 90 days Enfusion is expected to generate 1.82 times less return on investment than Baijiayun. But when comparing it to its historical volatility, Enfusion is 3.05 times less risky than Baijiayun. It trades about 0.02 of its potential returns per unit of risk. Baijiayun Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,310 in Baijiayun Group on August 27, 2024 and sell it today you would lose (3,402) from holding Baijiayun Group or give up 78.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. Baijiayun Group
Performance |
| Timeline |
| Enfusion |
| Baijiayun Group |
Enfusion and Baijiayun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Baijiayun
The main advantage of trading using opposite Enfusion and Baijiayun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion position performs unexpectedly, Baijiayun 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 Baijiayun will offset losses from the drop in Baijiayun's long position.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |