Correlation Between BYD Co and CIMC Vehicles
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By analyzing existing cross correlation between BYD Co Ltd and CIMC Vehicles Co, you can compare the effects of market volatilities on BYD Co and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD Co and CIMC Vehicles.
Diversification Opportunities for BYD Co and CIMC Vehicles
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BYD and CIMC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BYD Co Ltd and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of BYD Co i.e., BYD Co and CIMC Vehicles go up and down completely randomly.
Pair Corralation between BYD Co and CIMC Vehicles
Assuming the 90 days trading horizon BYD Co is expected to generate 2.72 times less return on investment than CIMC Vehicles. In addition to that, BYD Co is 1.46 times more volatile than CIMC Vehicles Co. It trades about 0.06 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.23 per unit of volatility. If you would invest 885.00 in CIMC Vehicles Co on November 4, 2024 and sell it today you would earn a total of 38.00 from holding CIMC Vehicles Co or generate 4.29% 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. CIMC Vehicles Co
Performance |
| Timeline |
| BYD Co |
| CIMC Vehicles |
BYD Co and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD Co and CIMC Vehicles
The main advantage of trading using opposite BYD Co and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD Co position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| BYD Co vs. Maccura Biotechnology Co | BYD Co vs. Jiangsu GDK Biotechnology | BYD Co vs. Chongqing Brewery Co | BYD Co vs. Shenzhen Bioeasy Biotechnology |
| CIMC Vehicles vs. Wuhan Yangtze Communication | CIMC Vehicles vs. Guangzhou Restaurants Group | CIMC Vehicles vs. Jilin Jlu Communication | CIMC Vehicles vs. Sanbo Hospital Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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