Correlation Between C and Baylin Technologies

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

By analyzing existing cross correlation between C Com Satellite Systems and Baylin Technologies, you can compare the effects of market volatilities on C and Baylin Technologies 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 C with a short position of Baylin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of C and Baylin Technologies.

Diversification Opportunities for C and Baylin Technologies

-0.45

Correlation Coefficient

C  Baylin Technologies

Very good diversification

The 3 months correlation between C and Baylin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding C Com Satellite Systems and Baylin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baylin Technologies and C 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 C Com Satellite Systems are associated (or correlated) with Baylin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baylin Technologies has no effect on the direction of C i.e., C and Baylin Technologies go up and down completely randomly.

Pair Corralation between C and Baylin Technologies

Assuming the 90 days horizon C Com Satellite Systems is expected to generate 0.75 times more return on investment than Baylin Technologies. However, C Com Satellite Systems is 1.34 times less risky than Baylin Technologies. It trades about 0.01 of its potential returns per unit of risk. Baylin Technologies is currently generating about 0.0 per unit of risk. If you would invest  98.00  in C Com Satellite Systems on April 21, 2025 and sell it today you would lose (3.00) from holding C Com Satellite Systems or give up 3.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

C Com Satellite Systems  vs.  Baylin Technologies

C Com Satellite

Risk-Adjusted Performance

Very Weak

Over the last 90 days C Com Satellite Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, C is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Baylin Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baylin Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Baylin Technologies is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with C and Baylin Technologies

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

The idea behind C Com Satellite Systems and Baylin Technologies 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.

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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.