Correlation Between BYD Co and BlueFocus Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between BYD Co Ltd and BlueFocus Communication Group, you can compare the effects of market volatilities on BYD Co and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and BlueFocus Communication.
Diversification Opportunities for BYD Co and BlueFocus Communication
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and BlueFocus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of BYD Co i.e., BYD Co and BlueFocus Communication go up and down completely randomly.
Pair Corralation between BYD Co and BlueFocus Communication
Assuming the 90 days trading horizon BYD Co is expected to generate 16.17 times less return on investment than BlueFocus Communication. But when comparing it to its historical volatility, BYD Co Ltd is 2.14 times less risky than BlueFocus Communication. It trades about 0.01 of its potential returns per unit of risk. BlueFocus Communication Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 579.00 in BlueFocus Communication Group on August 27, 2024 and sell it today you would earn a total of 458.00 from holding BlueFocus Communication Group or generate 79.1% 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. BlueFocus Communication Group
Performance |
| Timeline |
| BYD Co |
| BlueFocus Communication |
BYD Co and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and BlueFocus Communication
The main advantage of trading using opposite BYD Co and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| BYD Co vs. Changchun Faway Automobile | BYD Co vs. Songz Automobile Air | BYD Co vs. Tongyu Communication | BYD Co vs. Hubei Yingtong Telecommunication |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |