Correlation Between BYD Co and Luolai Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and Luolai Home Textile, you can compare the effects of market volatilities on BYD Co and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Luolai Home.
Diversification Opportunities for BYD Co and Luolai Home
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BYD and Luolai is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of BYD Co i.e., BYD Co and Luolai Home go up and down completely randomly.
Pair Corralation between BYD Co and Luolai Home
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 1.11 times more return on investment than Luolai Home. However, BYD Co is 1.11 times more volatile than Luolai Home Textile. It trades about 0.01 of its potential returns per unit of risk. Luolai Home Textile is currently generating about -0.02 per unit of risk. If you would invest 26,562 in BYD Co Ltd on October 11, 2024 and sell it today you would earn a total of 356.00 from holding BYD Co Ltd or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Luolai Home Textile
Performance |
| Timeline |
| BYD Co |
| Luolai Home Textile |
BYD Co and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Luolai Home
The main advantage of trading using opposite BYD Co and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| BYD Co vs. GRINM Semiconductor Materials | BYD Co vs. Nexchip Semiconductor Corp | BYD Co vs. Semiconductor Manufacturing Intl | BYD Co vs. Dynagreen Environmental Protection |
| Luolai Home vs. BYD Co Ltd | Luolai Home vs. China Mobile Limited | Luolai Home vs. Agricultural Bank of | Luolai Home 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |