Correlation Between Baidu and Creatd

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

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

Diversification Opportunities for Baidu and Creatd

-0.25

Correlation Coefficient

Baidu  Creatd

Very good diversification

The 3 months correlation between Baidu and Creatd is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Baidu Inc and Creatd Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creatd Inc and Baidu 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 Baidu Inc are associated (or correlated) with Creatd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creatd Inc has no effect on the direction of Baidu i.e., Baidu and Creatd go up and down completely randomly.

Pair Corralation between Baidu and Creatd

If you would invest  8,341  in Baidu Inc on September 1, 2024 and sell it today you would earn a total of  164.00  from holding Baidu Inc or generate 1.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Baidu Inc  vs.  Creatd Inc

Baidu Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Baidu Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Baidu is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Creatd Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Baidu and Creatd

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

The idea behind Baidu Inc and Creatd 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.