Correlation Between BYD Co and Hubei Yingtong
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By analyzing existing cross correlation between BYD Co Ltd and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on BYD Co and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Hubei Yingtong.
Diversification Opportunities for BYD Co and Hubei Yingtong
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BYD and Hubei is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of BYD Co i.e., BYD Co and Hubei Yingtong go up and down completely randomly.
Pair Corralation between BYD Co and Hubei Yingtong
Assuming the 90 days trading horizon BYD Co is expected to generate 3.78 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, BYD Co Ltd is 2.42 times less risky than Hubei Yingtong. It trades about 0.08 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 889.00 in Hubei Yingtong Telecommunication on November 4, 2024 and sell it today you would earn a total of 772.00 from holding Hubei Yingtong Telecommunication or generate 86.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| BYD Co |
| Hubei Yingtong Telec |
BYD Co and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Hubei Yingtong
The main advantage of trading using opposite BYD Co and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong's long position.| BYD Co vs. Konfoong Materials International | BYD Co vs. Servyou Software Group | BYD Co vs. Hangzhou Pinming Software | BYD Co vs. Orinko Advanced Plastics |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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