Correlation Between Baijiayun and MMTEC

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

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

Diversification Opportunities for Baijiayun and MMTEC

0.24

Correlation Coefficient

Baijiayun  MMTEC

Modest diversification

The 3 months correlation between Baijiayun and MMTEC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Baijiayun Group and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc and Baijiayun 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 Baijiayun Group are associated (or correlated) with MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Baijiayun i.e., Baijiayun and MMTEC go up and down completely randomly.

Pair Corralation between Baijiayun and MMTEC

Considering the 90-day investment horizon Baijiayun Group is expected to generate 2.0 times more return on investment than MMTEC. However, Baijiayun is 2.0 times more volatile than MMTEC Inc. It trades about 0.0 of its potential returns per unit of risk. MMTEC Inc is currently generating about -0.01 per unit of risk. If you would invest  200.00  in Baijiayun Group on July 10, 2025 and sell it today you would lose (37.00) from holding Baijiayun Group or give up 18.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	38.1%
Values	Daily Returns

Baijiayun Group  vs.  MMTEC Inc

Baijiayun Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Baijiayun Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Baijiayun is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

MMTEC Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MMTEC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Baijiayun and MMTEC

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

The idea behind Baijiayun Group and MMTEC Inc 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.