Correlation Between BYD Co and Bank of Suzhou
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By analyzing existing cross correlation between BYD Co Ltd and Bank of Suzhou, you can compare the effects of market volatilities on BYD Co and Bank of Suzhou 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 Bank of Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Bank of Suzhou.
Diversification Opportunities for BYD Co and Bank of Suzhou
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BYD and Bank is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Bank of Suzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Suzhou 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 Bank of Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Suzhou has no effect on the direction of BYD Co i.e., BYD Co and Bank of Suzhou go up and down completely randomly.
Pair Corralation between BYD Co and Bank of Suzhou
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 1.53 times more return on investment than Bank of Suzhou. However, BYD Co is 1.53 times more volatile than Bank of Suzhou. It trades about 0.02 of its potential returns per unit of risk. Bank of Suzhou is currently generating about -0.05 per unit of risk. If you would invest 27,495 in BYD Co Ltd on October 17, 2024 and sell it today you would earn a total of 135.00 from holding BYD Co Ltd or generate 0.49% 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. Bank of Suzhou
Performance |
| Timeline |
| BYD Co |
| Bank of Suzhou |
BYD Co and Bank of Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Bank of Suzhou
The main advantage of trading using opposite BYD Co and Bank of Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Bank of Suzhou 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 Bank of Suzhou will offset losses from the drop in Bank of Suzhou's long position.| BYD Co vs. China Minmetals Rare | BYD Co vs. Uroica Mining Safety | BYD Co vs. North Copper Shanxi | BYD Co vs. Zhejiang Qianjiang Motorcycle |
| Bank of Suzhou vs. Zhengzhou Coal Mining | Bank of Suzhou vs. Ye Chiu Metal | Bank of Suzhou vs. Anhui Jinhe Industrial | Bank of Suzhou vs. Pengxin International Mining |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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