Correlation Between Leafbuyer Technologies and Baidu
Can any of the company-specific risk be diversified away by investing in both Leafbuyer Technologies and Baidu 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 Leafbuyer Technologies and Baidu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leafbuyer Technologies and Baidu Inc, you can compare the effects of market volatilities on Leafbuyer Technologies and Baidu 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 Leafbuyer Technologies with a short position of Baidu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leafbuyer Technologies and Baidu.
Diversification Opportunities for Leafbuyer Technologies and Baidu
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leafbuyer and Baidu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Leafbuyer Technologies and Baidu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baidu Inc and Leafbuyer Technologies 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 Leafbuyer Technologies are associated (or correlated) with Baidu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baidu Inc has no effect on the direction of Leafbuyer Technologies i.e., Leafbuyer Technologies and Baidu go up and down completely randomly.
Pair Corralation between Leafbuyer Technologies and Baidu
Given the investment horizon of 90 days Leafbuyer Technologies is expected to generate 12.23 times more return on investment than Baidu. However, Leafbuyer Technologies is 12.23 times more volatile than Baidu Inc. It trades about 0.18 of its potential returns per unit of risk. Baidu Inc is currently generating about -0.17 per unit of risk. If you would invest 1.00 in Leafbuyer Technologies on August 29, 2024 and sell it today you would earn a total of 0.30 from holding Leafbuyer Technologies or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leafbuyer Technologies vs. Baidu Inc
Performance |
| Timeline |
| Leafbuyer Technologies |
| Baidu Inc |
Leafbuyer Technologies and Baidu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leafbuyer Technologies and Baidu
The main advantage of trading using opposite Leafbuyer Technologies and Baidu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leafbuyer Technologies position performs unexpectedly, Baidu 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 Baidu will offset losses from the drop in Baidu's long position.| Leafbuyer Technologies vs. Meta Platforms | Leafbuyer Technologies vs. Alphabet Inc Class C | Leafbuyer Technologies vs. Twilio Inc | Leafbuyer Technologies vs. Snap Inc |
| Baidu vs. Tencent Music Entertainment | Baidu vs. Twilio Inc | Baidu vs. Spotify Technology SA | Baidu vs. Weibo 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |