Correlation Between BYD Co and Allmed Medical
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By analyzing existing cross correlation between BYD Co Ltd and Allmed Medical Products, you can compare the effects of market volatilities on BYD Co and Allmed Medical 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 Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Allmed Medical.
Diversification Opportunities for BYD Co and Allmed Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BYD and Allmed is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products 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 Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of BYD Co i.e., BYD Co and Allmed Medical go up and down completely randomly.
Pair Corralation between BYD Co and Allmed Medical
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.86 times more return on investment than Allmed Medical. However, BYD Co Ltd is 1.16 times less risky than Allmed Medical. It trades about 0.02 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.0 per unit of risk. If you would invest 25,080 in BYD Co Ltd on August 31, 2024 and sell it today you would earn a total of 2,403 from holding BYD Co Ltd or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Allmed Medical Products
Performance |
| Timeline |
| BYD Co |
| Allmed Medical Products |
BYD Co and Allmed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Allmed Medical
The main advantage of trading using opposite BYD Co and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.| BYD Co vs. Kingclean Electric Co | BYD Co vs. Keda Clean Energy | BYD Co vs. CSSC Offshore Marine | BYD Co vs. Dhc Software Co |
| Allmed Medical vs. PetroChina Co Ltd | Allmed Medical vs. China Mobile Limited | Allmed Medical vs. Ping An Insurance | Allmed Medical vs. China Petroleum Chemical |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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