Correlation Between BYD Co and Jiangnan Mould
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By analyzing existing cross correlation between BYD Co Ltd and Jiangnan Mould Plastic, you can compare the effects of market volatilities on BYD Co and Jiangnan Mould 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 Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangnan Mould.
Diversification Opportunities for BYD Co and Jiangnan Mould
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Jiangnan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic 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 Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of BYD Co i.e., BYD Co and Jiangnan Mould go up and down completely randomly.
Pair Corralation between BYD Co and Jiangnan Mould
Assuming the 90 days trading horizon BYD Co is expected to generate 2.02 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, BYD Co Ltd is 1.22 times less risky than Jiangnan Mould. It trades about 0.1 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Jiangnan Mould Plastic on September 2, 2024 and sell it today you would earn a total of 179.00 from holding Jiangnan Mould Plastic or generate 31.63% 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. Jiangnan Mould Plastic
Performance |
| Timeline |
| BYD Co |
| Jiangnan Mould Plastic |
BYD Co and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangnan Mould
The main advantage of trading using opposite BYD Co and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| BYD Co vs. Biwin Storage Technology | BYD Co vs. PetroChina Co Ltd | BYD Co vs. Industrial and Commercial | BYD Co vs. China Construction Bank |
| Jiangnan Mould vs. BYD Co Ltd | Jiangnan Mould vs. China Mobile Limited | Jiangnan Mould vs. Agricultural Bank of | Jiangnan Mould vs. Industrial and Commercial |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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