Correlation Between BAYNGR and CEMATRIX

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

By analyzing existing cross correlation between BAYNGR 395 15 APR 45 and CEMATRIX, you can compare the effects of market volatilities on BAYNGR and CEMATRIX 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 BAYNGR with a short position of CEMATRIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAYNGR and CEMATRIX.

Diversification Opportunities for BAYNGR and CEMATRIX

-0.18

Correlation Coefficient

BAYNGR  CEMATRIX

Good diversification

The 3 months correlation between BAYNGR and CEMATRIX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BAYNGR 395 15 APR 45 and CEMATRIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMATRIX and BAYNGR 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 BAYNGR 395 15 APR 45 are associated (or correlated) with CEMATRIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMATRIX has no effect on the direction of BAYNGR i.e., BAYNGR and CEMATRIX go up and down completely randomly.

Pair Corralation between BAYNGR and CEMATRIX

Assuming the 90 days trading horizon BAYNGR is expected to generate 2.63 times less return on investment than CEMATRIX. But when comparing it to its historical volatility, BAYNGR 395 15 APR 45 is 3.21 times less risky than CEMATRIX. It trades about 0.16 of its potential returns per unit of risk. CEMATRIX is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  17.00  in CEMATRIX on May 6, 2025 and sell it today you would earn a total of  6.00  from holding CEMATRIX or generate 35.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	33.87%
Values	Daily Returns

BAYNGR 395 15 APR 45  vs.  CEMATRIX

BAYNGR 5 15

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BAYNGR 395 15 APR 45 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, BAYNGR sustained solid returns over the last few months and may actually be approaching a breakup point.

CEMATRIX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CEMATRIX are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, CEMATRIX reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BAYNGR and CEMATRIX

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

The idea behind BAYNGR 395 15 APR 45 and CEMATRIX 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.