Correlation Between BAYNGR and ChipMOS Technologies

Can any of the company-specific risk be diversified away by investing in both BAYNGR and ChipMOS 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 BAYNGR and ChipMOS Technologies 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 ChipMOS Technologies, you can compare the effects of market volatilities on BAYNGR and ChipMOS 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 BAYNGR with a short position of ChipMOS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAYNGR and ChipMOS Technologies.

Diversification Opportunities for BAYNGR and ChipMOS Technologies

-0.29

Correlation Coefficient

BAYNGR  ChipMOS Technologies

Very good diversification

The 3 months correlation between BAYNGR and ChipMOS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding BAYNGR 395 15 APR 45 and ChipMOS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChipMOS Technologies 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 ChipMOS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChipMOS Technologies has no effect on the direction of BAYNGR i.e., BAYNGR and ChipMOS Technologies go up and down completely randomly.

Pair Corralation between BAYNGR and ChipMOS Technologies

Assuming the 90 days trading horizon BAYNGR 395 15 APR 45 is expected to generate 0.62 times more return on investment than ChipMOS Technologies. However, BAYNGR 395 15 APR 45 is 1.62 times less risky than ChipMOS Technologies. It trades about 0.19 of its potential returns per unit of risk. ChipMOS Technologies is currently generating about 0.0 per unit of risk. If you would invest  6,762  in BAYNGR 395 15 APR 45 on May 3, 2025 and sell it today you would earn a total of  308.00  from holding BAYNGR 395 15 APR 45 or generate 4.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	32.26%
Values	Daily Returns

BAYNGR 395 15 APR 45  vs.  ChipMOS Technologies

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 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BAYNGR sustained solid returns over the last few months and may actually be approaching a breakup point.

ChipMOS Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days ChipMOS Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ChipMOS Technologies is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BAYNGR and ChipMOS Technologies

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

The idea behind BAYNGR 395 15 APR 45 and ChipMOS 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 CEOs Directory module to screen CEOs from public companies around the world.