Correlation Between BYD Co and Omnijoi Media
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By analyzing existing cross correlation between BYD Co Ltd and Omnijoi Media Corp, you can compare the effects of market volatilities on BYD Co and Omnijoi Media 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 Omnijoi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Omnijoi Media.
Diversification Opportunities for BYD Co and Omnijoi Media
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and Omnijoi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Omnijoi Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnijoi Media Corp 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 Omnijoi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnijoi Media Corp has no effect on the direction of BYD Co i.e., BYD Co and Omnijoi Media go up and down completely randomly.
Pair Corralation between BYD Co and Omnijoi Media
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.5 times more return on investment than Omnijoi Media. However, BYD Co Ltd is 2.02 times less risky than Omnijoi Media. It trades about 0.08 of its potential returns per unit of risk. Omnijoi Media Corp is currently generating about 0.01 per unit of risk. If you would invest 19,703 in BYD Co Ltd on September 2, 2024 and sell it today you would earn a total of 7,780 from holding BYD Co Ltd or generate 39.49% 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. Omnijoi Media Corp
Performance |
| Timeline |
| BYD Co |
| Omnijoi Media Corp |
BYD Co and Omnijoi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Omnijoi Media
The main advantage of trading using opposite BYD Co and Omnijoi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Omnijoi Media 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 Omnijoi Media will offset losses from the drop in Omnijoi Media's long position.| BYD Co vs. Biwin Storage Technology | BYD Co vs. PetroChina Co Ltd | BYD Co vs. Industrial and Commercial | BYD Co vs. China Construction Bank |
| Omnijoi Media vs. Lutian Machinery Co | Omnijoi Media vs. China Longyuan Power | Omnijoi Media vs. PetroChina Co Ltd | Omnijoi Media 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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