Correlation Between Baijiayun and Paid

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

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

Diversification Opportunities for Baijiayun and Paid

0.23

Correlation Coefficient

Baijiayun  Paid

Modest diversification

The 3 months correlation between Baijiayun and Paid is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Baijiayun Group and Paid Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paid 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 Paid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paid Inc has no effect on the direction of Baijiayun i.e., Baijiayun and Paid go up and down completely randomly.

Pair Corralation between Baijiayun and Paid

Considering the 90-day investment horizon Baijiayun Group is expected to generate 21.72 times more return on investment than Paid. However, Baijiayun is 21.72 times more volatile than Paid Inc. It trades about 0.08 of its potential returns per unit of risk. Paid Inc is currently generating about -0.13 per unit of risk. If you would invest  629.00  in Baijiayun Group on May 5, 2025 and sell it today you would lose (435.00) from holding Baijiayun Group or give up 69.16% of portfolio value over 90 days.

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

Baijiayun Group  vs.  Paid Inc

Baijiayun Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Baijiayun Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Baijiayun exhibited solid returns over the last few months and may actually be approaching a breakup point.

Paid Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Paid Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Baijiayun and Paid

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

The idea behind Baijiayun Group and Paid 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.