Correlation Between Baytex Energy and Photronics
Can any of the company-specific risk be diversified away by investing in both Baytex Energy and Photronics 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 Baytex Energy and Photronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baytex Energy Corp and Photronics, you can compare the effects of market volatilities on Baytex Energy and Photronics 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 Baytex Energy with a short position of Photronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baytex Energy and Photronics.
Diversification Opportunities for Baytex Energy and Photronics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baytex and Photronics is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Baytex Energy Corp and Photronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photronics and Baytex Energy 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 Baytex Energy Corp are associated (or correlated) with Photronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photronics has no effect on the direction of Baytex Energy i.e., Baytex Energy and Photronics go up and down completely randomly.
Pair Corralation between Baytex Energy and Photronics
Considering the 90-day investment horizon Baytex Energy Corp is expected to generate 1.16 times more return on investment than Photronics. However, Baytex Energy is 1.16 times more volatile than Photronics. It trades about 0.19 of its potential returns per unit of risk. Photronics is currently generating about 0.05 per unit of risk. If you would invest 218.00 in Baytex Energy Corp on September 8, 2025 and sell it today you would earn a total of 107.00 from holding Baytex Energy Corp or generate 49.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baytex Energy Corp vs. Photronics
Performance |
| Timeline |
| Baytex Energy Corp |
| Photronics |
Baytex Energy and Photronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baytex Energy and Photronics
The main advantage of trading using opposite Baytex Energy and Photronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baytex Energy position performs unexpectedly, Photronics 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 Photronics will offset losses from the drop in Photronics' long position.| Baytex Energy vs. Tonopah Divide Mining | Baytex Energy vs. Coeur Mining | Baytex Energy vs. Jones Soda Co | Baytex Energy vs. Warner Music Group |
| Photronics vs. STRATEC Biomedical AG | Photronics vs. Lincoln Educational Services | Photronics vs. Kelvin Medical | Photronics vs. Profound Medical Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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