Correlation Between Alibaba Group and BAIGAI
Can any of the company-specific risk be diversified away by investing in both Alibaba Group and BAIGAI 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 Alibaba Group and BAIGAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alibaba Group Holding and Investeringsforeningen Bankinvest , you can compare the effects of market volatilities on Alibaba Group and BAIGAI 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 Alibaba Group with a short position of BAIGAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and BAIGAI.
Diversification Opportunities for Alibaba Group and BAIGAI
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alibaba and BAIGAI is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Investeringsforeningen Bankinv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with BAIGAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Alibaba Group i.e., Alibaba Group and BAIGAI go up and down completely randomly.
Pair Corralation between Alibaba Group and BAIGAI
Given the investment horizon of 90 days Alibaba Group is expected to generate 24.35 times less return on investment than BAIGAI. In addition to that, Alibaba Group is 3.48 times more volatile than Investeringsforeningen Bankinvest . It trades about 0.0 of its total potential returns per unit of risk. Investeringsforeningen Bankinvest is currently generating about 0.12 per unit of volatility. If you would invest 10,487 in Investeringsforeningen Bankinvest on January 25, 2024 and sell it today you would earn a total of 1,933 from holding Investeringsforeningen Bankinvest or generate 18.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.13% |
Values | Daily Returns |
Alibaba Group Holding vs. Investeringsforeningen Bankinv
Performance |
Timeline |
Alibaba Group Holding |
Investeringsforeningen |
Alibaba Group and BAIGAI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alibaba Group and BAIGAI
The main advantage of trading using opposite Alibaba Group and BAIGAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, BAIGAI 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 BAIGAI will offset losses from the drop in BAIGAI's long position.Alibaba Group vs. Sea | Alibaba Group vs. Vipshop Holdings Limited | Alibaba Group vs. Amazon Inc | Alibaba Group vs. JD Inc Adr |
BAIGAI vs. Sparinvest Lange | BAIGAI vs. Investeringsforeningen Danske Invest | BAIGAI vs. Sparinv SICAV | BAIGAI vs. Sparinvest Value Emerging |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |