Correlation Between Beijing Bewinner and BYD Co
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By analyzing existing cross correlation between Beijing Bewinner Communications and BYD Co Ltd, you can compare the effects of market volatilities on Beijing Bewinner 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 Beijing Bewinner with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bewinner and BYD Co.
Diversification Opportunities for Beijing Bewinner and BYD Co
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and BYD is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bewinner Communication and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Beijing Bewinner 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 Beijing Bewinner Communications 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 Beijing Bewinner i.e., Beijing Bewinner and BYD Co go up and down completely randomly.
Pair Corralation between Beijing Bewinner and BYD Co
Assuming the 90 days trading horizon Beijing Bewinner Communications is expected to generate 1.55 times more return on investment than BYD Co. However, Beijing Bewinner is 1.55 times more volatile than BYD Co Ltd. It trades about 0.02 of its potential returns per unit of risk. BYD Co Ltd is currently generating about 0.02 per unit of risk. If you would invest 563.00 in Beijing Bewinner Communications on August 31, 2024 and sell it today you would earn a total of 71.00 from holding Beijing Bewinner Communications or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Beijing Bewinner Communication vs. BYD Co Ltd
Performance |
| Timeline |
| Beijing Bewinner Com |
| BYD Co |
Beijing Bewinner and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bewinner and BYD Co
The main advantage of trading using opposite Beijing Bewinner and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bewinner 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.| Beijing Bewinner vs. BYD Co Ltd | Beijing Bewinner vs. Agricultural Bank of | Beijing Bewinner vs. Industrial and Commercial | Beijing Bewinner vs. China State Construction |
| BYD Co vs. Kingclean Electric Co | BYD Co vs. Keda Clean Energy | BYD Co vs. CSSC Offshore Marine | BYD Co vs. Dhc Software Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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