Correlation Between Invengo Information and BYD Co
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By analyzing existing cross correlation between Invengo Information Technology and BYD Co Ltd, you can compare the effects of market volatilities on Invengo Information 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 Invengo Information with a short position of BYD Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and BYD Co.
Diversification Opportunities for Invengo Information and BYD Co
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Invengo and BYD is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and BYD Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co and Invengo Information 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 Invengo Information Technology 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 Invengo Information i.e., Invengo Information and BYD Co go up and down completely randomly.
Pair Corralation between Invengo Information and BYD Co
Assuming the 90 days trading horizon Invengo Information Technology is expected to under-perform the BYD Co. In addition to that, Invengo Information is 2.92 times more volatile than BYD Co Ltd. It trades about -0.06 of its total potential returns per unit of risk. BYD Co Ltd is currently generating about 0.06 per unit of volatility. If you would invest 28,300 in BYD Co Ltd on September 25, 2024 and sell it today you would earn a total of 542.00 from holding BYD Co Ltd or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Invengo Information Technology vs. BYD Co Ltd
Performance |
| Timeline |
| Invengo Information |
| BYD Co |
Invengo Information and BYD Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and BYD Co
The main advantage of trading using opposite Invengo Information and BYD Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information 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.| Invengo Information vs. Industrial and Commercial | Invengo Information vs. China Construction Bank | Invengo Information vs. Agricultural Bank of | Invengo Information vs. Bank of China |
| BYD Co vs. Shanghai Rongtai Health | BYD Co vs. Xiamen Jihong Package | BYD Co vs. Dezhan HealthCare Co | BYD Co vs. Great Sun Foods 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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