Correlation Between Baijiayun and Marin Software

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

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

Diversification Opportunities for Baijiayun and Marin Software

-0.73

Correlation Coefficient

Baijiayun  Marin Software

Pay attention - limited upside

The 3 months correlation between Baijiayun and Marin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Baijiayun Group and Marin Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marin Software 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 Marin Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marin Software has no effect on the direction of Baijiayun i.e., Baijiayun and Marin Software go up and down completely randomly.

Pair Corralation between Baijiayun and Marin Software

Considering the 90-day investment horizon Baijiayun Group is expected to generate 0.83 times more return on investment than Marin Software. However, Baijiayun Group is 1.21 times less risky than Marin Software. It trades about 0.28 of its potential returns per unit of risk. Marin Software is currently generating about 0.12 per unit of risk. If you would invest  812.00  in Baijiayun Group on August 30, 2024 and sell it today you would earn a total of  132.00  from holding Baijiayun Group or generate 16.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Baijiayun Group  vs.  Marin Software

Baijiayun Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Baijiayun Group are ranked lower than 12 (%) 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.

Marin Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marin Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Baijiayun and Marin Software

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

The idea behind Baijiayun Group and Marin Software 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 Global Correlations module to find global opportunities by holding instruments from different markets.