Correlation Between Shenzhen Centralcon and BYD Co
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and BYD Co Ltd, you can compare the effects of market volatilities on Shenzhen Centralcon and BYD Co 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 Shenzhen Centralcon with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and BYD Co.
Diversification Opportunities for Shenzhen Centralcon and BYD Co
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and BYD is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with BYD Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and BYD Co go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and BYD Co
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the BYD Co. In addition to that, Shenzhen Centralcon is 1.61 times more volatile than BYD Co Ltd. It trades about -0.02 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.01 per unit of volatility. If you would invest 28,521 in BYD Co Ltd on August 27, 2024 and sell it today you would lose (672.00) from holding BYD Co Ltd or give up 2.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. BYD Co Ltd
Performance |
| Timeline |
| Shenzhen Centralcon |
| BYD Co |
Shenzhen Centralcon and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and BYD Co
The main advantage of trading using opposite Shenzhen Centralcon and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, BYD Co 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 BYD Co will offset losses from the drop in BYD Co's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| BYD Co vs. Changchun Faway Automobile | BYD Co vs. Songz Automobile Air | BYD Co vs. Tongyu Communication | BYD Co vs. Hubei Yingtong Telecommunication |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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