Correlation Between Weibo Corp and BATSLN
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By analyzing existing cross correlation between Weibo Corp and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on Weibo Corp and BATSLN 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 Weibo Corp with a short position of BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and BATSLN.
Diversification Opportunities for Weibo Corp and BATSLN
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Weibo and BATSLN is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 and Weibo Corp 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 Weibo Corp are associated (or correlated) with BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of Weibo Corp i.e., Weibo Corp and BATSLN go up and down completely randomly.
Pair Corralation between Weibo Corp and BATSLN
Allowing for the 90-day total investment horizon Weibo Corp is expected to under-perform the BATSLN. But the stock apears to be less risky and, when comparing its historical volatility, Weibo Corp is 1.09 times less risky than BATSLN. The stock trades about -0.01 of its potential returns per unit of risk. The BATSLN 475 01 NOV 42 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,823 in BATSLN 475 01 NOV 42 on September 14, 2024 and sell it today you would earn a total of 280.00 from holding BATSLN 475 01 NOV 42 or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.87% |
| Values | Daily Returns |
Weibo Corp vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| Weibo Corp |
| BATSLN 475 01 |
Weibo Corp and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and BATSLN
The main advantage of trading using opposite Weibo Corp and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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