Correlation Between SPO Networks and Bayfirst Financial

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

By analyzing existing cross correlation between SPO Networks and Bayfirst Financial Corp, you can compare the effects of market volatilities on SPO Networks and Bayfirst Financial 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 SPO Networks with a short position of Bayfirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPO Networks and Bayfirst Financial.

Diversification Opportunities for SPO Networks and Bayfirst Financial

0.0

Correlation Coefficient

SPO Networks  Bayfirst Financial

Pay attention - limited upside

The 3 months correlation between SPO and Bayfirst is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPO Networks and Bayfirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayfirst Financial Corp and SPO Networks 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 SPO Networks are associated (or correlated) with Bayfirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayfirst Financial Corp has no effect on the direction of SPO Networks i.e., SPO Networks and Bayfirst Financial go up and down completely randomly.

Pair Corralation between SPO Networks and Bayfirst Financial

If you would invest  0.01  in SPO Networks on May 20, 2025 and sell it today you would earn a total of  0.00  from holding SPO Networks or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

SPO Networks  vs.  Bayfirst Financial Corp

SPO Networks

Risk-Adjusted Performance

Weakest

Over the last 90 days SPO Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, SPO Networks is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Bayfirst Financial Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Bayfirst Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with SPO Networks and Bayfirst Financial

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

The idea behind SPO Networks and Bayfirst Financial Corp 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.