Correlation Between BYD Co and Jiangxi Naipu
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By analyzing existing cross correlation between BYD Co Ltd and Jiangxi Naipu Mining, you can compare the effects of market volatilities on BYD Co and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and Jiangxi Naipu.
Diversification Opportunities for BYD Co and Jiangxi Naipu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BYD and Jiangxi is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of BYD Co i.e., BYD Co and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between BYD Co and Jiangxi Naipu
Assuming the 90 days trading horizon BYD Co Ltd is expected to generate 0.85 times more return on investment than Jiangxi Naipu. However, BYD Co Ltd is 1.18 times less risky than Jiangxi Naipu. It trades about -0.05 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.23 per unit of risk. If you would invest 28,842 in BYD Co Ltd on October 25, 2024 and sell it today you would lose (592.00) from holding BYD Co Ltd or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD Co Ltd vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| BYD Co |
| Jiangxi Naipu Mining |
BYD Co and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and Jiangxi Naipu
The main advantage of trading using opposite BYD Co and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| BYD Co vs. HeBei Jinniu Chemical | BYD Co vs. Maoming Petro Chemical Shihua | BYD Co vs. TongFu Microelectronics Co | BYD Co vs. Hengli Petrochemical Co |
| Jiangxi Naipu vs. Kweichow Moutai Co | Jiangxi Naipu vs. Contemporary Amperex Technology | Jiangxi Naipu vs. Beijing Roborock Technology | Jiangxi Naipu vs. BYD Co Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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