Correlation Between CYIOS and Baron Capital

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

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

Diversification Opportunities for CYIOS and Baron Capital

0.03

Correlation Coefficient

CYIOS  Baron Capital

Significant diversification

The 3 months correlation between CYIOS and Baron is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CYIOS and Baron Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Capital and CYIOS 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 CYIOS are associated (or correlated) with Baron Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Capital has no effect on the direction of CYIOS i.e., CYIOS and Baron Capital go up and down completely randomly.

Pair Corralation between CYIOS and Baron Capital

Given the investment horizon of 90 days CYIOS is expected to under-perform the Baron Capital. But the pink sheet apears to be less risky and, when comparing its historical volatility, CYIOS is 2.72 times less risky than Baron Capital. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Baron Capital is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Baron Capital on December 27, 2024 and sell it today you would earn a total of  0.01  from holding Baron Capital or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

CYIOS  vs.  Baron Capital

CYIOS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CYIOS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Baron Capital

Risk-Adjusted Performance

OK

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

Pair Trading with CYIOS and Baron Capital

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

The idea behind CYIOS and Baron Capital 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.