Correlation Between TECSYS and Baylin Technologies

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

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

Diversification Opportunities for TECSYS and Baylin Technologies

-0.1

Correlation Coefficient

TECSYS  Baylin Technologies

Good diversification

The 3 months correlation between TECSYS and Baylin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding TECSYS Inc and Baylin Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baylin Technologies and TECSYS 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 TECSYS Inc 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 TECSYS i.e., TECSYS and Baylin Technologies go up and down completely randomly.

Pair Corralation between TECSYS and Baylin Technologies

Assuming the 90 days trading horizon TECSYS Inc is expected to under-perform the Baylin Technologies. But the stock apears to be less risky and, when comparing its historical volatility, TECSYS Inc is 2.0 times less risky than Baylin Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Baylin Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Baylin Technologies on April 25, 2025 and sell it today you would lose (2.00) from holding Baylin Technologies or give up 6.67% of portfolio value over 90 days.

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

TECSYS Inc  vs.  Baylin Technologies

TECSYS Inc

Risk-Adjusted Performance

Very Weak

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

The main advantage of trading using opposite TECSYS and Baylin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TECSYS 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 TECSYS Inc 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.