Correlation Between NioCorp Developments and BAIDU
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By analyzing existing cross correlation between NioCorp Developments Ltd and BAIDU INC 3625, you can compare the effects of market volatilities on NioCorp Developments 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 NioCorp Developments with a short position of BAIDU. Check out your portfolio center. Please also check ongoing floating volatility patterns of NioCorp Developments and BAIDU.
Diversification Opportunities for NioCorp Developments and BAIDU
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NioCorp and BAIDU is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding NioCorp Developments Ltd and BAIDU INC 3625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIDU INC 3625 and NioCorp Developments 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 NioCorp Developments Ltd 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 3625 has no effect on the direction of NioCorp Developments i.e., NioCorp Developments and BAIDU go up and down completely randomly.
Pair Corralation between NioCorp Developments and BAIDU
Allowing for the 90-day total investment horizon NioCorp Developments is expected to generate 11.19 times less return on investment than BAIDU. But when comparing it to its historical volatility, NioCorp Developments Ltd is 3.56 times less risky than BAIDU. It trades about 0.04 of its potential returns per unit of risk. BAIDU INC 3625 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 9,391 in BAIDU INC 3625 on September 2, 2024 and sell it today you would earn a total of 336.00 from holding BAIDU INC 3625 or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 22.98% |
| Values | Daily Returns |
NioCorp Developments Ltd vs. BAIDU INC 3625
Performance |
| Timeline |
| NioCorp Developments |
| BAIDU INC 3625 |
NioCorp Developments and BAIDU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NioCorp Developments and BAIDU
The main advantage of trading using opposite NioCorp Developments and BAIDU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NioCorp Developments 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.| NioCorp Developments vs. Teck Resources Ltd | NioCorp Developments vs. Sigma Lithium Resources | NioCorp Developments vs. Vale SA ADR | NioCorp Developments vs. Sayona Mining Limited |
| BAIDU vs. Paiute Oil Mining | BAIDU vs. Doubledown Interactive Co | BAIDU vs. Vindicator Silver Lead Mining | BAIDU vs. NioCorp Developments Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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