Correlation Between BYD Co and Gotion High
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and Gotion High tech, you can compare the effects of market volatilities on BYD Co and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Gotion High.
Diversification Opportunities for BYD Co and Gotion High
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Gotion is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of BYD Co i.e., BYD Co and Gotion High go up and down completely randomly.
Pair Corralation between BYD Co and Gotion High
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.94 times more return on investment than Gotion High. However, BYD Co Ltd is 1.07 times less risky than Gotion High. It trades about 0.06 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.36 per unit of risk. 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Gotion High tech
Performance |
| Timeline |
| BYD Co |
| Gotion High tech |
BYD Co and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Gotion High
The main advantage of trading using opposite BYD Co and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| 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 |
| Gotion High vs. Kweichow Moutai Co | Gotion High vs. Contemporary Amperex Technology | Gotion High vs. G bits Network Technology | Gotion High vs. BYD Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |