Correlation Between BYD Co and XinJiang GuoTong
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By analyzing existing cross correlation between BYD Co Ltd and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on BYD Co and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and XinJiang GuoTong.
Diversification Opportunities for BYD Co and XinJiang GuoTong
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BYD and XinJiang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of BYD Co i.e., BYD Co and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between BYD Co and XinJiang GuoTong
Assuming the 90 days trading horizon BYD Co is expected to generate 1.81 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, BYD Co Ltd is 1.62 times less risky than XinJiang GuoTong. It trades about 0.06 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 801.00 in XinJiang GuoTong Pipeline on November 4, 2024 and sell it today you would earn a total of 19.00 from holding XinJiang GuoTong Pipeline or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| BYD Co |
| XinJiang GuoTong Pipeline |
BYD Co and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and XinJiang GuoTong
The main advantage of trading using opposite BYD Co and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| BYD Co vs. Maccura Biotechnology Co | BYD Co vs. Jiangsu GDK Biotechnology | BYD Co vs. Chongqing Brewery Co | BYD Co vs. Shenzhen Bioeasy Biotechnology |
| XinJiang GuoTong vs. Easyhome New Retail | XinJiang GuoTong vs. TongFu Microelectronics Co | XinJiang GuoTong vs. Bosera CMSK Industrial | XinJiang GuoTong vs. Guangdong Jingyi Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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