Correlation Between BYD Co and CNPC Capital
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By analyzing existing cross correlation between BYD Co Ltd and CNPC Capital Co, you can compare the effects of market volatilities on BYD Co and CNPC 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 BYD Co with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and CNPC Capital.
Diversification Opportunities for BYD Co and CNPC Capital
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and CNPC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and BYD Co 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 BYD Co Ltd are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of BYD Co i.e., BYD Co and CNPC Capital go up and down completely randomly.
Pair Corralation between BYD Co and CNPC Capital
Assuming the 90 days trading horizon BYD Co is expected to generate 6.26 times less return on investment than CNPC Capital. But when comparing it to its historical volatility, BYD Co Ltd is 1.49 times less risky than CNPC Capital. It trades about 0.01 of its potential returns per unit of risk. CNPC Capital Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 574.00 in CNPC Capital Co on October 15, 2024 and sell it today you would earn a total of 62.00 from holding CNPC Capital Co or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. CNPC Capital Co
Performance |
| Timeline |
| BYD Co |
| CNPC Capital |
BYD Co and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and CNPC Capital
The main advantage of trading using opposite BYD Co and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, CNPC 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| BYD Co vs. Guangdong Qunxing Toys | BYD Co vs. Innovative Medical Management | BYD Co vs. Kingclean Electric Co | BYD Co vs. Guangzhou Restaurants Group |
| CNPC Capital vs. Xinjiang Baodi Mining | CNPC Capital vs. Chengtun Mining Group | CNPC Capital vs. Zoje Resources Investment | CNPC Capital vs. Jointo Energy Investment |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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