Correlation Between BYD Co and Qingdao Choho
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By analyzing existing cross correlation between BYD Co Ltd and Qingdao Choho Industrial, you can compare the effects of market volatilities on BYD Co and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Qingdao Choho.
Diversification Opportunities for BYD Co and Qingdao Choho
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Qingdao is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of BYD Co i.e., BYD Co and Qingdao Choho go up and down completely randomly.
Pair Corralation between BYD Co and Qingdao Choho
Assuming the 90 days trading horizon BYD Co Ltd is expected to under-perform the Qingdao Choho. But the stock apears to be less risky and, when comparing its historical volatility, BYD Co Ltd is 2.04 times less risky than Qingdao Choho. The stock trades about -0.47 of its potential returns per unit of risk. The Qingdao Choho Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,698 in Qingdao Choho Industrial on September 3, 2024 and sell it today you would earn a total of 62.00 from holding Qingdao Choho Industrial or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Qingdao Choho Industrial
Performance |
| Timeline |
| BYD Co |
| Qingdao Choho Industrial |
BYD Co and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Qingdao Choho
The main advantage of trading using opposite BYD Co and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| BYD Co vs. Bus Online Co | BYD Co vs. Zhangjiagang Freetrade Science | BYD Co vs. Vontron Technology Co | BYD Co vs. Tianshui Huatian Technology |
| Qingdao Choho vs. Zhejiang Construction Investment | Qingdao Choho vs. Puyang Huicheng Electronic | Qingdao Choho vs. Epoxy Base Electronic | Qingdao Choho vs. Dongnan Electronics Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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