Correlation Between BYD Co and Glodon Software
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By analyzing existing cross correlation between BYD Co Ltd and Glodon Software Co, you can compare the effects of market volatilities on BYD Co and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Glodon Software.
Diversification Opportunities for BYD Co and Glodon Software
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Glodon is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of BYD Co i.e., BYD Co and Glodon Software go up and down completely randomly.
Pair Corralation between BYD Co and Glodon Software
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.71 times more return on investment than Glodon Software. However, BYD Co Ltd is 1.42 times less risky than Glodon Software. It trades about -0.05 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.24 per unit of risk. If you would invest 28,842 in BYD Co Ltd on October 25, 2024 and sell it today you would lose (592.00) from holding BYD Co Ltd or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Glodon Software Co
Performance |
| Timeline |
| BYD Co |
| Glodon Software |
BYD Co and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Glodon Software
The main advantage of trading using opposite BYD Co and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| BYD Co vs. HeBei Jinniu Chemical | BYD Co vs. Maoming Petro Chemical Shihua | BYD Co vs. TongFu Microelectronics Co | BYD Co vs. Hengli Petrochemical Co |
| Glodon Software vs. Kweichow Moutai Co | Glodon Software vs. NAURA Technology Group | Glodon Software vs. APT Medical | Glodon Software 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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