Correlation Between Baidu and Mliuz SA

Can any of the company-specific risk be diversified away by investing in both Baidu and Mliuz SA 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 Baidu and Mliuz SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baidu Inc and Mliuz SA, you can compare the effects of market volatilities on Baidu and Mliuz SA 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 Baidu with a short position of Mliuz SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baidu and Mliuz SA.

Diversification Opportunities for Baidu and Mliuz SA

-0.12

Correlation Coefficient

Baidu  Mliuz SA

Good diversification

The 3 months correlation between Baidu and Mliuz is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Baidu Inc and Mliuz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mliuz SA and Baidu 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 Baidu Inc are associated (or correlated) with Mliuz SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mliuz SA has no effect on the direction of Baidu i.e., Baidu and Mliuz SA go up and down completely randomly.

Pair Corralation between Baidu and Mliuz SA

Assuming the 90 days trading horizon Baidu is expected to generate 17.57 times less return on investment than Mliuz SA. But when comparing it to its historical volatility, Baidu Inc is 3.25 times less risky than Mliuz SA. It trades about 0.02 of its potential returns per unit of risk. Mliuz SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  453.00  in Mliuz SA on April 22, 2025 and sell it today you would earn a total of  191.00  from holding Mliuz SA or generate 42.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Baidu Inc  vs.  Mliuz SA

Baidu Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Baidu Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Baidu is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Mliuz SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mliuz SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Mliuz SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Baidu and Mliuz SA

The main advantage of trading using opposite Baidu and Mliuz SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baidu position performs unexpectedly, Mliuz SA 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 Mliuz SA will offset losses from the drop in Mliuz SA's long position.

The idea behind Baidu Inc and Mliuz SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.