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
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BYD and Allmed is -0.15. 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 is expected to generate 8.44 times less return on investment than Allmed Medical. But when comparing it to its historical volatility, BYD Co Ltd is 1.5 times less risky than Allmed Medical. It trades about 0.05 of its potential returns per unit of risk. Allmed Medical Products is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 856.00 in Allmed Medical Products on November 5, 2024 and sell it today you would earn a total of 101.00 from holding Allmed Medical Products or generate 11.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. Liaoning Dingjide Petrochemical | BYD Co vs. Air China Ltd | BYD Co vs. Southern PublishingMedia Co | BYD Co vs. Duzhe Publishing Media |
| Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. China Construction Bank | Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. Bank of China |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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